Things aren’t looking too good for Research In Motion (better known as RIM) as the company has announced that it plans to cut 2,000 jobs – almost a tenth of its workforce in order to cope with its current losses from slow sales and stolen market share. The downsizing will leave the company with about 17,000 employees left to “focus on areas that offer the highest growth opportunities.”
Seeing how the company has been faring recently in the smartphone market, you can’t really blame it – RIM has predicted that sales this quarter may drop for the first time in nine years. RIM has been struggling to cope in the current smartphone race and because it hasn’t released a new BlackBerry phone since last August (though that didn’t seem to affect the Apple) Android smartphones and the iPhone have been leaving the company behind in the dust.
With stock value dropping 54% this year alone, RIM is starting to look like a sinking ship. However, these hardships the company is going through right now could be the wakeup call it needs in order to get back on its feet. Can RIM fight its way back to the top of the smartphone market again? Only time will tell.
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