RIM Cuts 2,000 Employees!
The BlackBerry maker and Canadian tech giant, Research In Motion (RIM) has broadcasted plans to let go 2,000 employees or roughly a tenth of its labor force. The news was announced in their Q1 2012 financial results.
The action is said to be a part of a previously announced cost-cutting effort. The move comes as the company is facing callous criticism from several employees and industrial analysts. The cutback will have an effect on all functions across the company and are a part of the plan.
RIM has sent out a press report titled as “Management Update and Details On Cost Optimization Program”. The Report states that it “intended to create greater alignment… in order to better position the company for future growth and profitability”. The affected employees in North America and certain other countries will be notified and been handed with pink slips this week.
The affected employees will also receive severance packages and outplacement support. According to reports, there are still more cuts to come at some “later date” and after all this is done, RIM will end up with an anticipated global staff of 17,000 people.
RIM really looks serious in organizing the company; there are some shifts in the management too, the company also announced new responsibilities for its top management. Send us a tweet @techmento and let us know what you think!