Canadian BlackBerry maker cuts 2,000 jobs

Added by David Sandercock on July 25, 2011

Canada’s Research In Motion, the maker of the popular BlackBerry smartphones and the PlayBook, announced on Monday that it is cutting 11% of its global workforce, or 2,000 jobs.

The company will have about 17,000 employees word wide, after the cuts. The reduction in RIMs workforce comes in amid competition from Apple’s iPhone and iPad, Android devices, and Microsoft’s Windows Phone 7 devices. The company said that the changes are being made to streamline operations and better position the company for future growth.

The company’s Blackberry OS, the world’s third most popular mobile operating system, slopped to 16% of overall market share in 2010 and is expected to fall to 11% by the end of 2011, despite the popularity of it’s BlackBerry Messenger service, unique to BlackBerry devices. In addition, it’s PlayBook – RIM’s tablet computer – has suffered from poor reviews, recalls, and stiff competition from devices like Apple’s iPad and Android-powered tablet computers.

Earlier this month the company’s investors agreed to give the company six months to revive its share price by 60%. RIM said it will set up a board of directors committee that will look at the a number of important factors that include necessity of having co-CEOs Mike Lazaridis and Jim Balsillie retain their board-of-director-level titles, and determine whether to continue with the jointly held CEO title.

RIM struggles for consumer market share in the US and Canada but fares well in countries like India and Indonesia.