RIM cutting 2,000 staff as tough times continue

RIM cutting 2,000 staff as tough times continueResearch in Motion (RIM) is beginning the process that will see a total of 2,000 staff laid off as the Canadian firm responds to falling BlackBerry market share and profits.

After seeing revenues down 12% in the last quarter, RIM reckons cutting a tenth of its total workforce is a “prudent and necessary step for the long-term success of the company”. 

But in a statement announcing the cuts, RIM seems to be suggesting it's not so much any current struggles that are behind the cutbacks, but rather simply a readjustment after “an extended period of rapid growth within the company whereby the workforce had nearly quadrupled in the last five years alone”.

BlackBerry sales are expected to actually drop overall this quarter for the first time in nine years, while the company's share price is down more than 50% in 2011 alone.

Both of those factors are largely because the company hasn't released a new phone since last August, but rumours are rife that that might change later today with the announcement of a new BlackBerry OS 7 handset.

Via: Bloomberg

Read more about: Blackberry OS

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