RIM cutting jobs 'in batches', eyes $1bn savings

RIM cutting jobs 'in batches', eyes $1bn savings

Summary: The BlackBerry maker is shedding jobs in batches, according to those who have lost jobs already, as the company looks to save more than $1 billion by the end of the fiscal year.

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BlackBerry maker Research in Motion is reportedly cutting jobs in 'batches' in a bid to save as much as $1 billion by the end of the current fiscal year, the Wall Street Journal reports.

No more than a year after the Ontario-based company cut 2,000 jobs, it looks to shed another 2,000 jobs from non-essential departments in the coming weeks and months.

The beleaguered firm is laying off batches of 10 people at a time across various sections of the company --- including quality control, operations, and parts departments --- according to those affected who spoke to the Journal.

The company's first-quarter results are out on June 28, where RIM is expected to announce an operating loss following a fourth-quarter saw a loss of $125 million and a 25 percent drop in revenue.

A RIM spokesperson said the company had "reduced some positions as part of this program and may continue to do so as the company methodically works through a review of the business."

All hands on deck for BlackBerry 10. If you're not in it to win it, you're out. Anyone not focusing on BlackBerry 10 --- the next-generation operating system that RIM is hedging its bets on --- faces the chop, according to sources close to the company.

However, RIM runs the risk of alienating other parts of its business by cutting anyone out who is not in the BlackBerry 10 loop should the company choose to seek a buyer.

BlackBerry 10 is expected to launch in or around October.

Image credit: CNET Asia.

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Topics: Security, CXO, Mobility, BlackBerry, IT Employment

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7 comments
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  • The only way to save RIM

    1) is to immediately sign an agreement with Microsoft to include a blackberry messenger gateway app for Phone 7/8.

    2) Sign with an OEM, maybe HTC, to make an RIM-branded Android phone with a custom blackberry messenger gateway app for it as well.

    3) Dump BB10.

    4) Make 'Security' your secret sauce. A great mod would be TAPI access on android so that you could send super-secret data through the voice channel of a handset and thereby bypass all those countries trying to tamper with email/internet communication.
    croberts
    • How?

      Motorola lost money with Android and was purchased by Google. HTC is losing money. LG is losing money. Apple is taking 75% of the profits, Samsung around 24%. Everyone else is losing money.

      Nokia is losing money with Windows Phone.

      How will Android or Windows phone save RIM?
      dhmccoy
      • complete BS

        HTC is not losing money. Their profit are down from last year, but they are still making money. Research before posting please.
        Jean-Pierre-
  • RIM

    Wonder why they dont chop Corporate flunkies from CEO down pay first before putting hard workers out on the streets? Why not cut their pay their bonuses and toys till the company picks up. All anyone seems to know is cut jobs, cut jobs not cut pay of higher ups whose failures is the reasons of this. More people out of work less money in their pockets less customers for all and people able to pay bills adding to a more stressful economy it's that simple...
    wpreece
    • The smartest thing I've heard all day!

      You hit the nail on the head, wpreece! It's always the worker who gets the axe, when it absolutely should be the executives that get the axe & the pay cut. After all, it's not the workers leading the company to its downfall, it's the "leaders" of the corporation. Why is it that no one understands this? When will corporate America wake up, or at least those who oversee "corporate America"? These execs get millions of dollars for literally nothing, & each & every year another company or 10 hits the skids. Yet no one sees a common thread here. We have become our own worst enemies...
      rmazzeo
  • RIM just needs to sell...

    Sell it all to someone else while the getting is good and walk away... Much better than a slow painful death. Who knows, someone else may want the IP and might even put it to use, doubtful, but possible.
    i8thecat4
  • Be wise

    my neighbor's mother made $16059 last week. she is working on the computer and got a $509600 home. All she did was get blessed and follow the information shown on this site http://ow.ly/btPCI
    mccoy20