Research In Motion is showing new signs of struggle as the company is preparing to lay off 2,000 workers globally. The move comes as a part of a broader restructuring plan that will start in the coming weeks.
The news was reported by unnamed sources, who wanted to maintain their anonymity. However, the news is already public and evidently, the company will lay off 2,000 workers in an effort to reduce its costs.
The next round of sacking workers will begin from June 1, before the first quarter of Research In Motion ends. However, some analysts are expecting that RIM will announce the news of sacking 2,000 workers before that.
A source known to the matter said that after sacking 2000 workers, RIM’s total layoffs could end up in a high figure. The source also said that it will affect the Canadian based company’s legal side of operations, marketing, sales and HR divisions.
Since the news about the layoffs hasn’t been made official by Research In Motion yet, the source didn’t want to be named. However, the source questioned Research In Motion’s moves, asking whether it is moving towards a better future or diminishing to a particular niche.
When asked to comment on the new report, a spokeswoman of Research In Motion declined to make any comment but she hinted towards the comments Thorsten Heins, the new CEO of the company and Brian Bidulka, the Chief Financial Officer made on the company’s previous earnings call, which were related to the company’s intention to streamline its operations and save $1 billion in costs in the current financial year. The spokesperson said that Research In Motion had 20,000 workers globally but now, it has 16,500.
RIM’s new plan to lay off 2,000 workers shows how the Canadian based company continues to struggle. The company’s last hope is its line of BlackBerry 10 smartphones that will be launched later this year and if they fail to succeed, nobody knows what will happen to RIM.