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RIM to cut 2,000 jobs in global restructuring

According to a source close to the firm
Mon May 28 2012, 10:28
An RIM logo

BLACKBERRY MAKER Research in Motion (RIM) will lay off thousands of workers following the resignation last week of the brand's global sales chief, Patrick Spence, it has been alleged.

According to a source close to the company, RIM is preparing for a major global restructuring within the next few weeks that will see the departure of even more executives and the elimination of up to 2,000 jobs.

One person familiar with the company told the Canadian news outlet The Globe and Mail that the cuts could see even more layoffs.

"They've been axing people on the sly for months," one former RIM executive said in a report on Saturday. "Lots of guys are being packaged out right now."

If the source is proven right, the next round of layoffs will hit the firm's workforce of 16,500 around 1 June, a day before RIM's first quarter ends on 2 June. Some expect that the announcement might come even earlier.

The downsizing at RIM will be the second in the last year following considerably lower sales as it struggles to compete against market leaders Android and Apple.

RIM declined to comment on "rumours and speculation" and pointed us back to comments made by executives on its fourth quarter conference call "as background", that "RIM is going through a significant transformation and our financial performance will continue to be challenging for the next few quarters".

Patrick Spense, who has been working at the company for 14 years, revealed on Thursday he will be moving on. The sales team will report to Kristian Tear, RIM's new COO who will start this summer. Until then its sales staff will report directly to the company's CEO, Thorston Heins. µ


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