RIM (Research in Motion) a company that makes all blackberry products is gearing up to FIRE around 6000 employees worldwide and their worst hit will be the RIM’s legal, marketing, sales, operations, and human resources divisions., Globe and Mail (Canadian Newspaper) reported on Saturday. The report also stated that their sources have revealed RIM will start layoff process from 1st June which a day before the financial quarter end for RIM but many do believe that the process has either started or will start before 1st June.
RIM currently has 16,500 employees which is already down from it’s previous high of (approx) 20,000 so after the layoffs end they will be down to half their work force. Last July RIM had layed off around 2000 employees which is they call ‘Round 1″. RIM had targetted the junior level employees and for several months a term became popular internally, “GoodBye Thursday” as it was the day people were shown the door or given the boot or FIRED, you get the point.
“The strategic question is: are you accelerating into a better future or shrinking to a niche operation,” said the source, who declined to be identified due to the sensitive nature of the job cuts.
Chief Executive Thorsten Heins and Chief Financial Officer Brian Bidulka did point out in the past to streamline operations and increase the revenue by 1Billion dollars in the Fiscal year. So probably their theory is if you, pay less you save more and money saved is money earned, hence there you have it Increase in Revenue. RIM had reported a Loss in the forth quarter following which the new CEO promised some strategic transformations.
RIM/ Blackberry was a major player in the smartphone segment and the biggest in the US, as their ex-employees said that the top management’s failure to accept change and pushing out over priced obsolete devices in the market has hurt the Canadian company bad. Even the layoff news hasn’t helped the RIM stocks as they have hit a multiyear low of 150$ which last time happened in 2008.
Irony in all this is almost a Month ago in Australia RIM employees were Shouting Wake Up outside the Apple store and now the recently unemployed are probably sending their resume to Apple.