BLACKBERRY maker Research In Motion are struggling to deal with the sagging demand for its aging Smartphone line. As a result it has been reported that it will cut its global workforce by about 2000, leaving it with about 17,000 employees.
In a statement last night, RIM said the size of the workforce reduction was in line with the preliminary estimate it factored into guidance provided last month.
RIM said the job cuts were part of its cost optimisation program, which it said is focused on “eliminating redundancies and reallocating resources to focus on areas that offer the highest growth opportunities and alignment with RIM’s strategic objectives”.
The company also announced another executive departure. Chief operating officer Don Morrison, on medical leave for an undisclosed reason, will retire after more than 10 years with the company.
RIM has had a series of high-profile departures, coinciding with one of the company’s most challenging periods. It has quickly lost market share in the critical North American smartphone market to rivals Apple and devices powered by Google’s Android.