updated 10:30 am EDT, Tue June 21, 2011
RIM starts cutting jobs soon after poor quarter
RIM may have taken swift action on its promise of job cuts as early reports on Tuesday have hinted at the first layoff notices. At least some employees of the BlackBerry designer said they had been given notice just after arriving at work. As many as 200 would have been let go, Waterloo's local Record newspaper said.
No reports have come so far of cuts from RIM's other key offices, such as a core software team in Ottawa. Officials hadn't commented on whether job cuts were taking place.
RIM said during its latest results call that a "headcount reduction" was coming. The company's CEOs spun the cuts as necessary following fast growth and a need to tune for its best opportunities. Most, however, have seen them as reflections of rapidly sinking market share and now phone shipments that have pushed RIM into cost-cutting to optimize its business.
Sales have been hurt at RIM both from its faster-moving Android and iOS competition but also strategic decisions with limited resources. A decision to chase after the iPad with the BlackBerry PlayBook may have set back the launch of BlackBerry 7 and consequently every phone using the new OS, starting with the Bold 9900.