RIM: In transition
Posted Jul 26, 2011 08:16:40 AM.
This article is more than 5 years old.
Research In Motion is cutting about 11 per cent of its workforce.
It is eliminating two thousand jobs worldwide in an effort to save money in the increasingly competitive smartphone and tablet market.
The job cuts are the largest in the Canadian technology icon’s history and come after several years of strong growth and expansion at RIM.
The job cuts come as RIM faces off against a barrage of new competition in the smartphone market with the emergence of Apple’s iPhone and smartphones with Google’s Android operating system.
While many in the tech and business world will have nothing but doom and gloom to report regarding Research in Motion’s latest round of cuts – Communitech sees it a very different way.
The company’s President and CEO Iain Klugman says a move like this is not uncommon for companies in the tech sector.
Klugman says that not only does RIM have some great products coming out, but that they also have postings for other job openings on their website. It was also pointed out that RIM is the fifth most profitable company in Canada.
In a release, Communitech stated their “absolute confidence in the continued growth and success of Research In Motion.”
Meanwhile, on the markets – RIM stock fell about three-and-a-half per cent after the announcement.
RIM said last month that its quarterly revenue could drop for the first time in nine years.
