Waterloo, Can. — Research In Motion (RIM), makers of BlackBerry, announced Monday that the company will begin implementing what it characterized as “cost optimization” plans, a move that includes cutting more than 2,000 jobs.
The company will lay off nearly 11 percent of its global workforce and reorganize their upper management. Thorsten Heins is expanding his responsibilities to chief operating officer, product and sales, while Jim Rowan is now chief operating officer, Operations. Co-chief operating officer Don Morrission, currently on medical leave, is retiring after nearly a decade with the company.
RIM’s cost optimization plan claims the program will focus on eliminating redundancies and reallocating resources on areas that show the high growth opportunities that align with their objectives.
The news comes just weeks after RIM reported low Q1 financial results that do not bode well for the future.
Although RIM hopes the new plan will push towards greater results in the future, analysts believe the company will need to invest in strategic solutions to develop a mobile device that can compete with the popular iPhone and Android smartphones.