Canadian smartphone maker RIM, best known for its BlackBerry phones, has announced that it will cut 2,000 jobs or 10% of its global workforce, as the company resist maintaining profitability in the face of increasing competition from Apple’s iPhone and smartphones using Google’s Android operating system.
RIM said in a statement that “The workforce reduction is believed to be a prudent and necessary step for the long-term success of the company and it follows an extended period of rapid growth within the company whereby the workforce nearly quadrupled in the last five years alone.
RIM first informed on June 16 that significant layoffs were expected. The job cuts will be spread across the company’s universal operations and will convey its total staff complement down to concerning 17,000 workers from 19,000.
The company also gave new responsibilities to senior managers and said that Chief Operating Officer Don Morrison, presently on medical leave, plans to retire. RIM named Thorsten Heins to the prolonged role of COO for product and sales, supervision product engineering, hardware and software, and Jim Rowan is now COO for operations.
Recently, RIM appointed Patrick Spence as managing director of global sales and marketing. Chief Information Officer Robin Bienfait will also supervise RIM’s enterprise business.