Management Strategies

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RIM Cuts 2,000 Jobs

The maker of the popular BlackBerry smartphone announces layoffs as part of its cost optimization plan.

Challenged with falling profits, BlackBerry Maker Research In Motion (RIM) has announced that it is cutting 2,000 jobs. These cuts amount to about 10 percent of the company's global workforce, which will be reduced to about 17,000 people. RIM said that it will notify impacted employees this week.

In an effort to consolidate product lines, the company has also made some changes to its senior management team. Two current executives have been tasked with splitting the job of former COO Don Morrison, who retired in June: Thorsten Heins has been named RIM's new COO of product and sales, and Jim Rowan has taken on the role of COO, operations. In addition, the company promoted Patrick Spence to the role of managing director, global sales and regional marketing.

These organizational changes come a little more than a month after RIM announced a "cost optimization program" to help the company cut costs and increase growth.

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