Research In Motion have announced that they will be cutting 11 percent of their workforce, making 2,000 redundant. The company have been struggling in recent months and the streamlining process is set to help them cope in the tough economic climate.
Research In Motion have been finding it hard maintaining marketshare for their Blackberry phones when faced against tough opposition from Apple iOS and Google Android.
According to The Wall Street Journal, investors have been dumping stock during profit warnings and product delays.
Shares in Research In Motion have lost half their value in 2011 so far which is not a good indication for the business. Last month, they said they would be culling staff numbers, but the job cuts yesterday were more than expected.
RIM in recent years have doubled their work force to keep up with demand, so the recent job cuts are an indication that there are some serious problems internally. The final head count will be around 17,000, the company said.
Robert McWhirter, the head of Toronto money management firm Selective Asset Management Inc sold 58,000 shares in RIM a few weeks ago and he said that the company face “significant challenges.”
There have also been some staff changes in the management ranks within RIM as the top marketing executive left just before the Playbook was launched. Several other marketing executives have also left the company in recent weeks.
Kitguru says: Can RIM bounce back?