Research in Motion (NASDAQ:RIMM) has had its share of struggles, most of them well-documented by the tech and business press, and talk of restructuring has been rife in the past few weeks.
Research in Motion (NASDAQ:RIMM) has had its share of struggles, most of them well-documented by the tech and business press, and talk of restructuring has been rife in the past few weeks. With said restructuring due to begin in about two weeks’ time, the BlackBerry manufacturer is reportedly set to lay off at least 2,000 employees worldwide.
However, the worst may not be over for RIM employees, as sources from Canadian publication the Globe and Mailsuggested there may be even more layoffs to follow. Currently, RIM has 16,500 staff in its ranks, so losing 2,000 workers would represent more than ten percent of their workforce.
RIM, just like many other companies, has a strict policy of playing their cards close to their chest when it comes to rumors. Sad as it may seem, this isn’t a totally surprising move for RIM, whose market share in the smartphone wars has been steadily declining.
After taking up 13.6 percent of the smartphone market as of the first quarter of 2011, RIM took up just 6.4 percent in the first quarter of 2012. Apple (NASDAQ:AAPL), always a force in the Western world, has become an even bigger force to reckon with worldwide, while phones running Google’s (NASDAQ:GOOG) Android platform have also risen in popularity.
Another indicator that these 2,000 workers’ days may be numbered is the recent resignation of RIM Global Sales head Patrick Spence. His was the most recent of several resignations within RIM’s corporate team, including that of former co-CEO Jim Balsillie last March.
In the meantime, RIM’s sales team is reporting to the Canadian company’s CEO, Thorsten Heins. They will eventually be reporting to new RIM COO, Kristian Tear later on in the summer.