RIM expected to lay off 2,000 employees as Apple eats into its market share

Research In Motion is going through a rough phase. The recent reports indicate that the company could lay off tenth of its workforce by cutting 2,000 jobs by the end of this year. The biggest reason for this major step is the market share losses.

However, RIM claims that this step is a part of their overall strategy to bring back growth opportunities within the company. After the reduction, the company would be left with only 17,000 employees.

In the last nine years, this is the first time, when sale of Blackberry smartphones has dropped so low. In US the company is losing its market share and it’s all because of the consumers choice - preferring iPhone and other Android phones to Blackberry. One of the main reasons for this is the lack of newer handsets by RIM.

Many low cost mobile manufacturers have also launched their new handsets in Latin America, Asia and in European countries, which are cheaper than the Blackberry models like curve.

According to Alkesh Shah, an analyst, Evercore Partners Inc, Blackberry needs to focus on the revenue side and along with this they need to excite the consumers with their new launches, which might take time but bring something really special for them.

On July 16, RIM announced that the charges of the severance associated with the job cuts, are not yet included in the current fiscal year. The company is under scrutiny for recruiting many senior manager level employees to look after Blackberry’s problems.

Jim Rowan has taken over Don Morrison, Chief operating officer, Thorsten Heins is expected to be the next COO, of product and sales department, overseeing the entire hardware and software area.

According to shah, Thorsten Heins, a former Siemens AG manager, who joined RIM in 2007, would surely speed up the production development. Along with this RIM has also appointed Patrick Spence as MD of global sales and regional marketing. And, Robin Bienfait will also look after the entire enterprise.  

So, the good players have stepped on the ground, now lets see what special they would do for the enterprise.