RIM To Lay Off Another 2,000 Workers [Rumor Mill]


With the popularity of iPhone and Android-powered handsets causing rapid declines in the Blackberry line of smartphones Research In Motion (RIM) is expected to fire 2,000 more workers according to several sources.

Those insiders tell AllThingD that the move would allow the company to restructure in such a way that RIM could streamline its operations as executives have previously said was needed to keep the company profitable and moving forward.

If the rumor is true the layoffs would begin in June, just prior to RIM’s first fiscal quarter closing. The firings would follow last years layoffs which also occurred after a badly performing quarter. This new round would cut RIMs global workforce from 16,500 to 15,500 before the end of the summer. The layoffs are expected to hit every department and may even include some of the company’s executives.

The move to layoff executives has been a much talked about strategy as RIMs own OS has fallen by the wayside while Apple and Google have created systems that went from consumer friendly to relative business powerhouses in only a few short years.

The future of many RIM employees will likely be tied to the company’s 2012 successes which will include a BlackBerry device and an updated version of its operating system.

According to AllThingD:

“RIM CEO Thorsten Heins has vowed to improve execution at the company, streamlining operations and saving $1 billion by the end of fiscal 2013. His plan for achieving that, as explained by CFO Brian Bidulka: “Primarily by optimizing the cost position of our products and services and improving overall resource effectiveness and organizational efficiency.”

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