RIM Job Cuts: BlackBerry Maker To Cut 2,000 Positions

Rim Blackberry

First Posted: 07/25/11 08:44 AM ET Updated: 09/24/11 06:12 AM ET

THE CANADIAN PRESS -- WATERLOO, Ont. -- Research In Motion says it will cut about 11 per cent of its workforce this year, eliminating 2,000 jobs worldwide in an effort to save money in the increasingly competitive smartphone and tablet market.

The BlackBerry-maker provided the details on Monday, about a month after first revealing it would reduce its workforce by an unspecified number of jobs.

The job cuts are the largest in the Canadian technology icon's history and come after several years of rapid global growth and expansion.

"The workforce reduction is believed to be a prudent and necessary step for the long term success of the company," RIM said in a release before stock markets opened the week Monday.

"It follows an extended period of rapid growth within the company whereby the workforce had nearly quadrupled in the last five years alone."

RIM (TSX:RIM), based in Waterloo, Ont., currently has about 19,000 employees across its operations so the latest cuts amount to 11 per cent of the workforce, much of it in southwestern Ontario whre the company started.

The company noted that any severance payments or other charges related to the job cuts are not included in its second-quarter and full-year outlook.

The job cuts come as RIM faces off against a barrage of new competition in the smartphone market with the emergence of Apple's iPhone and smartphones with Google's Android operating system.

The flurry of new competitors has hurt its share in the important U.S. market.

RIM's PlayBook tablet, which met expectations of selling 500,000 in the recent quarter, has received lukewarm reviews compared with Apple's iPad.

RIM said it expects to provide more information on the layoffs when the company reports fiscal second-quarter results Sept. 15.
In pre-market trading in the United States, RIM's shares fell 41 cents, or 1.5 per cent, to US$27.50.

In another development, RIM also said that chief operating officer Don Morrison will retire after taking a temporary medical leave last month.

His job will be filled by Thorsten Heins who will take an expanded role of chief operating officer that includes all product engineering functions.

The company said that Heins' new role "is expected to both produce greater efficiencies and help to accelerate new product introductions in the future."

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THE CANADIAN PRESS -- WATERLOO, Ont. -- Research In Motion says it will cut about 11 per cent of its workforce this year, eliminating 2,000 jobs worldwide in an effort to save money in the increasingl...
THE CANADIAN PRESS -- WATERLOO, Ont. -- Research In Motion says it will cut about 11 per cent of its workforce this year, eliminating 2,000 jobs worldwide in an effort to save money in the increasingl...
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HUFFPOST SUPER USER
abuckley23
Published author. Visit me at Planet Kibi!
04:27 PM on 07/26/2011
Lol, rim job cuts! Classid headline.
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HUFFPOST SUPER USER
abuckley23
Published author. Visit me at Planet Kibi!
04:26 PM on 07/26/2011
Maybe they should just release a new phone?...oh wait they did that, no one noticed because it looked and functioned exactly like the previous six models.
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12:50 AM on 07/26/2011
I can't get a job at RIM or a rim job. How 'aboot' them Apples???
11:37 PM on 07/25/2011
Translation: Cut the workforce so CEO, investors can save themselves and give themselves a huge bonuses and perks.
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rikster
buy the ticket-take the ride
07:05 PM on 07/25/2011
RIM the new Palm....
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Y3rMawm
veni, vidi, bibi.
05:22 PM on 07/25/2011
Everybody does email. The issue with the rest of the player is a utter lack of security. There is opportunity for RIM, if they can improve speed, and functionality, while maintaining security.

Otherwise, they will go the way Dodo Bird
04:36 PM on 07/25/2011
RIM jobs haha
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Y3rMawm
veni, vidi, bibi.
05:17 PM on 07/25/2011
nice one.
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HUFFPOST SUPER USER
pjlowry
08:27 PM on 07/25/2011
Thats a lot of people losing their regular RIM jobs.
04:15 PM on 07/25/2011
RIM what boss would ever buy their employees a playbook when you marketed as an entertainment device? YOU are not Apple. Stick to what you know which is mobile for business.
HUFFPOST SUPER USER
captric
03:40 PM on 07/25/2011
Canada -- a second world country quickly loosing ANYTHING to be proud of
12:47 PM on 07/25/2011
Yikes. Are we going to have a GM government intervention or let it go like Nortel. Even though I am a free marketer, better the GM option.
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Y3rMawm
veni, vidi, bibi.
05:16 PM on 07/25/2011
Why prop up any failing businesses? This amounts to government throwing money down a black hole.

If private investors see value, they will scoop up RIM on the cheap. From the destruction, new ideas will flower, and attract investment capital.
05:27 PM on 07/25/2011
Y3rMawm Thank you for reminding me of my true beliefs. I think I am picking up Canadian and HuffPo socialist leanings. Lead on!
12:37 PM on 07/25/2011
i never see a headline; "corporation slashes executive compensation to ZERO, saves employee jobs"
HUFFPOST SUPER USER
Tquin
04:26 PM on 07/25/2011
Why on earth should any company work to save jobs? If offered higher pay employess have the right to leave and employers have the right to lay off those not needed. There is no job that is supposed to take care of employees forever. People should educate themselves to either move from job to job, or become a business owner. Once you become an owner, you can give all of your profits to your employees.
12:39 AM on 07/28/2011
why on earth should CEOs and board members get outrageous entitlements and salaries and be given golden parachutes

it's all a rich boys club so they can complain about the poor and the barely employed

the CEO types would love to see a return to slavery, when it was easier to make a profit as you didn't even pay your workers

ah, the golden days of 1 day off per week, no overtime pay, no healthcare, no unions, ability to fire anyone for any reason without any pay

why are entitlements only ok for the rich, but never for the poor or working class?

executives are pigs at the trough
history has many examples of the widening and deepening gap between rich and poor leading to violent revolution

remember "no taxation without representation" ?
11:59 AM on 07/25/2011
Google and Apple destroyed RIM. Between Nortel and RIM, their tech sector has been hammered in the last few years.
11:27 AM on 07/25/2011
Will these job cuts include the management people that have made the poor decisions that have led to the decline in sales or just the people who had no say in those decisions?
11:21 AM on 07/25/2011
Maybe if Jim Balsillie had have spent less time trying to acquire bankrupt hockey teams he would have noticed that a tiny start-up out of Cupertino was eating RIM's lunch like a fat kid at a pie-eating contest.
04:17 PM on 07/25/2011
The hockey play could of been a huge deal for RIM. A second team in the Ontario market would of done well and opened a lot of doors for RIM.
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HUFFPOST SUPER USER
Steve Karmazenuk
Author, Freelance Journalist, Curmudgeon
11:04 AM on 07/25/2011
Just goes to prove that if you go looking for a RIM job, you're bound to get just that, in the end.
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HUFFPOST SUPER USER
ljkcan
I don't let geographical borders limit my thinking
11:41 AM on 07/25/2011
Not so funny they moved my son from Toronto to work for them now he sits waiting and wondering.
12:57 PM on 07/25/2011
Exactly, these things have consequences for real people. Hence my comment above. And before RIM we had Nortel. What's with us and tech companies?
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HUFFPOST SUPER USER
Steve Karmazenuk
Author, Freelance Journalist, Curmudgeon
02:26 PM on 07/25/2011
And I've had my legs cut out from me by Bell Canada, where I had the unfortunate luck to work for most of a decade when they "surplussed" my job. Find a little humour in the situation; it helps you survive it.