2,000 jobs cut in Blackberry restructure

2,000 jobs cut in Blackberry restructure

By Rob Crossley

July 25th 2011 at 12:53PM

Group realigns business 'to areas that offer highest growth opportunities'

Blackberry manufacturer Research In Motion has announced a transformative restructuring plan that will eliminate around 2,000 jobs worldwide.

Targeted downsizing would reduce the employee count by around 11 per cent, RIM said.

The smartphone vendor has absorbed increasing pressures in the highly competitive smartphone sector, with Apple’s iPhone, Google’s Android – and now a Nokia-backed Microsoft – all fighting for the same space.

RIM, headquartered in Ontario, said it would realign its business to “focus on areas that offer the highest growth opportunities”.

To what extent games will play a part in RIM’s future is a matter of debate – the company recently made the surprise acquisition of mobile games development kit producer Scoreloop.

The Scoreloop purchase was part of the group’s continuing efforts to bring gaming and apps to the BlackBerry BBM social gaming platform.

But it has been speculated that RIM’s Blackberry Playbook has underperformed on the market, and the company’s future product outlook is also a matter of industry speculation.

RIM is set to lose its Chief Operating Officer Don Morrison. Thorsten Heins will pick up the duties, the firm said.

The company said its sizable severance pay out would not be included its financial outlook for the full year.