RIM to cut 2,000 jobs as cost cutting begins

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Up to 11 per cent of company’s global workforce to be cut as company announces retirement of COO DonMorrison 

BlackBerry maker Research In Motion (RIM) is cutting 2,000 jobs globally in a move it said is intended to create greater alignment of the organisation and to streamline its operations to better position it for future growth and profitability.

The size of this workforce reduction is in line with the preliminary estimate that was factored into RIM’s full year financial guidance on June 16.

RIM said it intends to notify impacted employees in North America and certain other countries this week. The remainder of the global workforce reductions will occur at a later date. All impacted employees will receive severance packages and outplacement support.

Additional information about the financial impact of this workforce reduction and other operating expense reductions will be communicated when the company reports Q2 results on September 15.

The company also announced that chief operating officer Don Morrison is to retire after more than 10 years at the Canadian handset manufacturer. He was one of three chief operating officers at RIM and has been on medical leave since June.

In Q1 results released by RIM on June 17, profits had fallen 9.5 per cent year-on-year from £481 million to £435 million. Revenues for the quarter were down 12 per cent from £3.43 billion to £3.06 billion compared to the previous three-month period.

RIM downgraded its Q2 forecasts, estimating revenues at between £2.62 billion and £3 billion – well below analyst expectations of £3.41 billion.

 

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