RIM to cut more than 10% of workforce as struggles continue

RIM Layoffs 2012

Research In Motion will reportedly lay off at least 2,000 workers as the company struggles to regain its footing in a smartphone market dominated by just two vendors. RIM added two new executives earlier this month, chief marketing officer Frank Boulben and chief operating officer Kristian Tear, but the Waterloo, Ontario-based smartphone maker is now preparing to make more drastic moves in an effort to cut costs, The Globe and Mail reported. The restructuring may begin in the next two weeks according to the report, and more than 10% of RIM’s global workforce of approximately 16,500 will be affected. RIM’s smartphone business has declined rapidly in the past few years as Apple and Samsung have risen to dominate the industry. In the first quarter this year, Apple is estimated to have accounted for 80% of global smartphone profits among major vendors while Samsung took in the remaining 20%. RIM plans to respond in the fourth quarter with the launch of its first BlackBerry 10-powered smartphone, code-named the BlackBerry London.

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