Research In Motion Limited (USA) (NASDAQ:RIMM) (TSE:RIM), the ailing manufacturer of BlackBerry and once the king of smartphone market, is planning to cut 2000 more jobs as the company struggles to gain the market share. According to The Globe and Mail, this elimination is a part of company’s global restructuring plan beginning June 1, when the company’s first quarter ends.
Another source close to the company said that the impending layoffs could be as high as 6000, badly affecting the marketing, production, operations, sales and HR departments. It’s a huge number as RIM has only 16,500 global workforce. And the company has already laid off more than 2000 workers last summer.
Hedge Funds: Small Firms Profit As Big Names Close In 2020
At the beginning of July, Lansdowne Partners, one of Europe's oldest and best-known hedge fund managers, announced that it was closing its flagship hedge fund after a run of poor performance. The closure is the latest in a string of high-profile hedge funds that have decided to shut up shop in recent years. Billionaire investor Read More
Many other sources close to the company reveal on condition of anonymity that it has already been letting many junior staff members go for the past few months. RIM is said to have a method called “Goodbye Thursdays” because that’s the day company generally lays off employees.
Blackberry has been losing market share to Apple’s iPhone and other smartphones running on Google’s Android software. 80 percent of the smartphone market is dominated by iPhone and a major part of the remaining 20% goes to Samsung and LG. In the first quarter this year, Blackberry had a market share of 6.4% which is way lower than 13.6% in the same quarter last year.
But RIM plans to launch BlackBerry 10, which the company is positioning as its “Comeback Device”, in the fourth quarter this year. The company has also seen reshuffling at the top management. Patrica Spence, Head of Global Sales and 14-year company veteran, resigned from her position last week. Two new executives, Kristian Tear and Frank Boulben were brought in. Mr. Tear is said to replace Patrica Spence, and Frank Boulben has been appointed as Chief Marketing Officer.
The job cuts haven’t changed company’s fortunes. Its fourth quarter revenues were $4.2 billion, down 25% from $5.6 billion in the same quarter last year. On Friday, RIM shares traded at $10.76 which were at $150 before 2008.