RIM Begins Laying Off Employees, Won't Say How Many (Yet)
June 20, 2012 8:44 AM
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The layoffs are reportedly occurring in many different departments including manufacturing and sales
Research In Motion (RIM) has officially
started laying off employees
after suffering a huge quarterly financial loss and losing the smartphone race against the likes of Apple and Google.
RIM hasn't announced exactly how many layoffs have occurred or how many will occur, but many people are posting on RIM forums like Crackberry.com saying that the layoffs have begun.
The layoffs are reportedly occurring in many different departments including manufacturing and sales. It is said that severance packages are being offered to these employees.
"RIM has committed to achieving significant efficiencies and operating cost reductions over the course of this fiscal year," said Tenille Kennedy, RIM spokesperson. "Our financial target is to drive at least $1 billion in savings by the end of fiscal 2013. Head count reductions are part of this initiative."
Previous reports released last month indicated that
RIM was looking to cut 2,000 jobs
total during this time period. That is about 12 percent of RIM's 16,500 worldwide workforce. However, new reports are saying that RIM may cut as many as 6,000 jobs this round -- 36 percent of its global workforce.
RIM's layoffs and need for $1 billion in savings stems from a poor Q1 2012 financial report, which was a $125 million USD loss. Before that, the company lost market share to Apple's iPhone and Google's Android-powered phones. RIM's BlackBerry smartphones just couldn't compete, and even its BlackBerry PlayBook took a dive after release. But, to be fair, Apple's iPad is king of the tablet market and no other competitor has been able to touch it. The Kindle Fire has been the only tablet to cut into Apple's market share during the holiday season in 2011, where
Amazon moved 4.7 million units
and Apple moved 15.4 million units.
With this much competition, RIM is sinking and looking to layoffs for a partial answer. Some have even said that RIM may become a candidate for bankruptcy or a sale.
This article is over a month old, voting and posting comments is disabled
6/20/2012 11:15:23 AM
Well, Canadians bailed Nortel out a few times...
6/20/2012 12:55:03 PM
and that was good money thrown after bad. I hope they learned their lesson. I hate the CPC, but Harper is more likely to take the correct path here.
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
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