Rumor: 2,000 New Layoffs Coming at RIM

Senior executives leave company as streamlining continues

   

Rumor: 2,000 New Layoffs Coming at RIM

Struggling smartphone maker Research in Motion (NASDAQ:RIMM) will soon lay off at least 2,000 workers, unnamed sources tell AllThingsD.

RIM pared its workforce by a similar number last summer.

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The latest round of layoffs will be part of RIM’s restructuring efforts and will lower the company’s worldwide payroll to about 14,500.

Rumors of more layoffs come as two senior executives leave the company.  On Monday, Karima Bawa, RIM’s chief legal officer, announced her retirement. Bawa will remain with the company until a replacement is located.

Last week, Patrick Spence, head of global sales resigned.  Bawa and Spence join a growing list of senior RIM executives to depart the company this year, Toronto’s Globe and Mail noted.

Battered by competition from Apple‘s (NASDAQ:AAPL) iPhone and smartphones running Google‘s (NASDAQ:GOOG) Android operating system, RIM has seen its market share fall sharply in recent years.

The company reported a loss of $125 million in the fourth fiscal quarter, on revenues that tumbled 25% over the previous year.

CEO Thorsten Heins, who is lo0king to cut $1 billion in costs in fiscal 2013, has compared his efforts to restructure and streamline the company to a jigsaw puzzle, saying he was figuring out which pieces – executives – did not fit in the puzzle.

RIM shares rose more than 2% in early Tuesday trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/05/rumor-2000-new-layoffs-coming-at-rim/.

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