Embattled BlackBerry-maker Research in Motion (RIM) is out with more bad news today.
In yet another clear illustration of the smartphone-maker’s lingering financial problems, RIM is laying off 2,000 employees in a widespread cost-cutting effort.
“The work force reduction is believed to be a prudent and necessary step for the long term success of the company and it follows an extended period of rapid growth within the company whereby the work force had nearly quadrupled in the last five years alone,” RIM said in a statement.
“This is not totally unexpected,” Jefferies & Co analyst Peter Misek told Reuters. “I think this is obviously realigning the cost structure to a new growth, or sales, reality.”
BlackBerry is now trailing well behind its iOS and Android rivals in a broad variety of consumer usage and preference categories.
The Waterloo, Ontario-based company will now be left with 17,000 employees. RIM says it will provide further details regarding the nature and scope of current an possibly future job cuts when the company reports second-quarter earnings on September 15th.
