Money Matters - Simplified

RIM set to cut at-least 2,000 jobs--Reports

RIM is set to cut atleast 2,000 jobs across the department in lieu of its global restructuring efforts.

According to news surfacing in Canadian newspapers RIM (Research in Motion) is set to cut atleast 2,000 jobs across the department in lieu of its global restructuring efforts.

The sources state that cutting down number of jobs in Blackberry Smartphone maker may increase from 2,000. Employees stretching from legal, human resources, finance, sales and marketing units will be detached.

The people attached closely with the company reported that the layoffs may take place in around June 1, before the first quarter of the financial year ends. However, some sources cited that the announcement may come even before that.

Research in Motion (RIM) is yet to issue an official statement regarding the matter but the rumors could be correct, especially after seeing what CEO of the company said after his appointment. CEO Thorsten Heins said that the company will streamline its operation and is strived to save about $1 billion in this year.

Reasons for cutting jobs

According to the statistics published by International Data Corporation (IDC) Blackberry’s share has declined drastically in the Smartphone market. IDC data stated that Blackberry market share has fallen from 13.6 per cent to 6.4 per cent; a big fall indeed.

RIM has lost its market share to Smartphone makers such as Apple and it has failed to compete against the likes of phone running on Google android systems. In the initial three months of the year RIM has lost £78 million.

The reasons for the decline in market share are the failure of its much anticipated PlayBook device, which the company launched to make an impact in the market. Blackberry delayed the launch of its much anticipated Blackberry 10 operating system another big setback which affected the market share.

RIM has a staff of around 16,500 worldwide and cutting down 2,000 jobs from its staff means shrinking its workforce considerably. Sony and HP are also cutting down jobs and HP is cutting down a whopping 27,000 jobs.