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RIM reported to have begun layoffs

updated 05:08 pm EDT, Wed June 20, 2012

Rumored layoffs said to materialize

Reports have emerged that Research In Motion has begun laying off large amounts of its workforce as the troubled handset maker struggles to return to profitability. Layoffs have been expected for some time now at RIM, as the company has committed to slimming down its operations. RIM confirmed to AllThingsD today, though, that significant head count reductions are underway.

Earlier this year, RIM CEO Thorsten Heins promised that the company would save $1 billion on the fiscal year, in large part through "improving ... organizational efficiency." Late last month, the company admitted that the quarter ended June 2 would show <>an operating loss due to unsold inventory in excess of $1 billion.

RIM is pinning its hopes on an update to its mobile OS, BlackBerry 10, which is due out this fall and will power a line of new BlackBerry devices, as well as the company's PlayBook tablet. One of RIM's production partners, though, has apparently voted no-confidence in the device maker. Celestia announced on Monday that it would cease production of BlackBerry-based devices over the next three to six months.

No figures have been given on exactly how many staff RIM will be laying off or from which departments. The company's tough financial straits have also seen it recently purging its executive staff in order to shift organizational focus more toward the regular public. RIM will be providing a business update in its Q1 FY13 results, due out June 28.

by MacNN Staff



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