RIM noted that its "workforce 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 workforce had nearly quadrupled in the last five years alone." Following the cuts the company will have about 17,000 staff worldwide.
Affected staff in North America and "certain other countries" will hear the bad news this week, while those in other global locations will have to wait while RIM works through the local labor law procedures.
The company, which announced in June it was planning to cut staff following a relatively disappointing first quarter, plans to outline the financial impact of the cuts when it reports its second-quarter earnings on September 15. (See RIM Lowers Guidance Amidst Poor Q1.)
As part of its revamp, RIM is reorganizing its senior management responsibilities. Fresh-faced Thorsten Heins is taking on the expanded role of COO, Product and Sales (instead of just product engineering). All engineering functions (hardware and software) are now in Heins' hands (try saying that quickly!).
Joining the senior team is Patrick Spence, a RIM sales veteran who becomes managing director, Global Sales and Regional Marketing, reporting to Heins.
Other job details include:
All those changes mean it's time for current COO Don Morrison to use the exit door as he is retiring from the company.
— Ray Le Maistre, International Managing Editor, Light Reading