Research In Motion Ltd. (RIMM, RIM.TO) is likely to cut over 2000 jobs as the struggling Canadian smartphone maker is preparing for a huge restructuring amid plunging sales, Canada's Globe and Mail reported Tuesday citing people familiar with the situation.
The layoffs will begin during the next couple weeks across its worldwide operations and could affect the company's legal, marketing, sales, operations and human resources divisions, the report said. The company currently has 16,500 staff globally.
It is expected that the next round of layoffs will be on June 1, while some expect the announcement to come even earlier. Last July, the company had announced plans to cut about 11% of the workforce or around 2,000 jobs.
After slipping to a loss in its fourth quarter due to charges and lower revenues, the company's new Chief Executive Thorsten Heins during the earnings call revealed plans to streamline operations as well as save $1 billion in the fiscal year. The company also said then that it expects continued pressure on revenue and earnings throughout fiscal 2013.
Since the January management shake up, which appointed Heins to the top post succeeding Co-Chief Executive Officers Jim Balsillie and Mike Lazaridis, some senior executives have left the company. Recently, David Yach retired from his role as CTO, Software, and Jim Rowan, COO, Global Operations, decided to pursue other interests.
As per reports, Patrick Spence quit recently as the company's global sales chief, and senior vice-president Alan Brenner also left the firm.
Meanwhile, the BlackBerry maker in early May hired Kristian Tear as Chief Operating Officer and Frank Boulben as Chief Marketing Officer.
Research In Motion, once the undisputed king of the smartphone market, has struggled lately to compete with Apple's (AAPL) iPhone and iPad, and devices powered by Google's (GOOG) Android software. As per research firm IDC, BlackBerry reportedly accounts for only 7 percent of global smartphone shipments at present.
As per the report, the planned restructuring under Heins would make the company slimmer as it tries to come out with a successful new set of BlackBerry devices, called BlackBerry 10.
In April, Bloomberg reported that Research In Motion was in talks to hire a financial adviser to help it weigh its strategic options including partnerships and joint ventures, licensing, and other ways to leverage its assets and maximize shareholder value. Although Heins did not speak of a possible sale, the company has been subjected to takeover speculation over the past year.
In pre-market on Nasdaq, Research In Motion shares are currently trading at $11.03, up $0.03 or 0.27 percent.
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