RIM begins round of 2,000 employee layoffs in America this week

BlackBerry maker Research in Motion will be cutting nearly 10% of its global workforce as it struggles to keep its piece of the smartphone market against the avalanche of Android-powered devices.

RIM will be laying off a total of 2,000 employees globally, and layoffs will begin in North America this week. The rest of the reductions will happen at an unspecified later date due to "local laws and regulations." The company says all employees who lose their job will receive severance packages and job placement assistance.

The layoffs this week will span across RIM's North American facilities, which include: Waterloo, Ontario; Mississauga, Ontario; Ottawa, Ontario; and Halifax, Nova Scotia in Canada; Alpharetta, Georgia; Bellevue, Washington; Andover, Massachusetts; Irving, Texas; Redwood City, California; Rolling Meadows, Illinois; and Sunrise, Florida in the United States; and Mexico City in Mexico.

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In the early days of consumer smartphones, RIM easily established BlackBerry as a go-to brand. It already found success among businesspeople with its emailing and messaging solutions, and between 2006-2009, the company continuously gained market share. But as smartphones began to reach the mainstream consumer, devices that put the web browsing and app shopping experience first have begun to knock down RIM's early leads. By 2010, RIM's user acquisitions had slowed and earnings dropped.

Now, smartphones powered by Google's Android operating system dominate the market and every gain Android makes seems to be coming directly from RIM's share.

ComScore Smartphones 1-11

After the layoffs, RIM's total workforce will be 17,000, putting it behind Google, who had 24,400 full-time employees at the beginning of 2011. Apple, by comparison, had 46,600 full-time employees at the end of 2010, and Microsoft had 89,000.

RIM will announce more information about the staff reduction on September 15 when it posts its quarterly earnings.

7 Responses to RIM begins round of 2,000 employee layoffs in America this week

  1. frankwick says:

    Do they have any patents worth any money? Their technology is old and the BES/BAS are useless pieces of infrastructure. Could a Microsoft or HP buy RIM and get any value form the patents?

    • psycros says:

      Probably. They do hold a handful of useful pushmail-related patents, or they used to anyway. What hacks me off is seeing RIM take the same road that every struggling tech company does. The first ones to get the axe are the innovators and veteran engineers, then the middle managers who actually do their jobs rather than spend all day groveling and schmoozing with their superiors. The very [b]last[/b] people to be fired are the ones most responsible, i.e. idiots at the top like Lazardis. The fall of the Blackberry empire can be laid squarely at his feet and those of his cohort, whose name escapes me. I mean, honestly...[i]co-CEOs?[/i] That tells you most of what you need to know right there. This is what happens when a company relies too heavily on governments for its livelihood: it begins to emulate them.

      • jcollake says:

        Welcome to our capitalist world as it exists today. My take? With increased transparency (not spin) consumers can take back our country by choosing who to do business with companies that act ethically.

      • Bay Area CA Male says:

        co-CEOs? That tells you most of what you need to know right there.

        AGREED!!!!!!!!!!

        There is a reason 99% of ALL corporations have ONE CEO...
        This link is a great place to get all you need to know about RIM...

        http://www.vision2mobile.com/news/2011/07/customer-s-viral-letter-rim-is-poorly-run-immatur.aspx

        And with that information going VIRAL throughout the internet I cannot beleive the company has not released a decent smartphone in the last year.

        If you see the latest report about consumer demand for iPhone and the market share that android is currently enjoying, THEN you add it all up... It paints a VERY scary picture for RIM.
        Adding up or summing together the consumer demand for iPhone and android market share you get to roughly 80-90% of the smartphone population....

        That only leaves 10-20% for Rim, Win7, and WebOS to share or split.

        THIS IS NOT GOOD FOLKS!!!!!!

        And combine that with a few simple facts:

        *iPhones are being offered for ALMOST free if you go with the 3GS.
        *android phones are cheaper than free with BOGO deal all over the place
        *featurewise RIM is WAYYY behind both iOS and droid
        *aesthetics play a HUGE role, Apple leads here again
        *many androids resemble iPhones AND many androids dont look half bad on their own
        *carrier availabilty
        *consumerization
        *and cell phone plans costing the same for all smartphones now...

        RIM is LITERALLY left with ZERO advantages!
        RIM has NOTHING that can "one-up" the competition
        RIM is on a FREE FALL with no end in sight....

        End Game for RIM is nothing short of bankruptcy or buy out.... Even their business partners are switching.

  2. watsonkely says:

    co-CEOs? That tells you most of what you need to know right there. This is what happens when a company relies too heavily on governments for its livelihood: it begins to emulate them.
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  3. Bay Area CA Male says:

    Everything I have read about RIM makes me so happy they are about to be shut down.

    The worse part about this is that the iPhone 5 is coming and will eat up the front stage for at least 3 solid months. During those 3 months you will not hear much of anything about anything else...

    I dont care how many android fans disagree with me... The smart people even in this site know I am right. RIM is toast at least for the rest of the year.

    The only reason I dont give android any credit for drowing out RIM noise is because the android community puts out a new "super phone" or a new "iphone ki. ller" every few weeks...
    This is the main reason nothing out there gets as much attention as the iPhone.

    The biggest LO. SER of all, Joe Wilcox, is doing backflips over 5 million samsung phones sold in 90 days... The sad part about that is Apple sold 20 MILLION iPhone 4's in the same time period.
    Please note the iPhone 4 is OVER 1 year old and still outselling the best android phone by a 75% margin.

    The the loser has the nerve to claim that the samsung is going to outsell the iPhone...
    I mean seriously... (i wish i could type what i am thinking about the doosh)
    ps. i know thats not how you spell doosh.

    Back to RIM... They are getting what they deserve and I cant wait for them to finish falling off the cliff. Given what i said above, they have NO chance of doing ANYTHING at least for the rest of the year..... And this next quarter will be their worst quarter EVER!!!!!

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