RIM to Lay Off 2,000 Employees, Shuffle Upper Management
Business hasn’t exactly been going smoothly for RIM. Its smartphone market share fell 4.2 percent to 24.7 in May, and the drop in numbers is now echoed by a substantial staff cut.
Following a warning hinting at impending layoffs in June, the company has moved forward with axing 2,000 employees—about 10 percent of its workforce. Information Week reports that, in addition to the job cuts, the company will be shuffling its upper management.
RIM COO Don Morrison, who has been at the company for 10 years, will be retiring from the company after dealing with an undisclosed illness. To fill his position, RIM will appoint two individuals with different focuses: Thorsten Heins will be COO for products and sales and will manage hardware and software engineering, while Jim Rowan will assume the title of COO for operations, with a focus on manufacturing, global supply chain, and repairs.
But that’s not the only personnel shakeup: RIM sales exec Patrick Spence will step up to the position of managing director for global sales and regional marketing. And while we can’t say for sure, it seems likely that the administrative shuffle is a response to its flagging smartphone market share and its failure to truly penetrate the tablet field with its PlayBook. We’ll have to wait and see if these staff changes have any impact on the BlackBerry maker’s market share.
via Information Week