Research in Motion (RIMM), the maker of the BlackBerry smartphones and tablet, said Monday that it is slashing about 2,000 jobs, or 11% of its workforce, as sales slow amid market share losses — RIMs’ share fell nearly five percent in three months — to Google’s (GOOG) Android and Apple’s (AAPL) iPhone.
The reductions, across all functions, are part of a plan to “focus on areas that offer the highest growth opportunities,” RIM said today in a statement. RIM also said that the cost reduction is “a prudent and necessary step” for the co.’s long-term success.
After the jobs have been eliminated, RIM, whose Q1 profits plunged 10%, will employ 17,000 people worldwide. RIM said it would explain the financial impact of the cuts and other operating expense reductions when the company reports Q2 results on September 15, 2011.
RIM also announced changes among its top execs. It said one of its three chief operating officers, Don Morrison, would retire and the other two, Thorsten Heins and Jim Rowan, would take on additional responsibilities.
At last check RIM shares were down $1.12, or 4.1%, to $26.79 at 3:04 p.m. New York time in Nasdaq trading. The stock had lost more than 50% of its value this year before today.