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RIM to slash 11 percent of its workforce this Fall to get through the bad times

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Research in Motion (RIM), BlackBerry’s owner, announced it will cut its workforce by 11 percent in order to cut down costs and be able to stay in the game with competitors such as Apple and Android. The total number of people getting fired is 2,000, which is huge and would leave the company with 17,000 people on staff.

RIM has announced a number of changes to its executive board, including the retirement of Chief Operating Officer Don Morrison. Some senior executives at RIM have jumped the boat and joined rival Samsung Electronics.

Colin Grillis, BGC Partners analyst, has said to Reuters that cost cutting isn’t the right way to go and that RIM needs to show more effective execution in order to remain in the smartphones game. This means that products should arrive without delay to customers and offer a competitive feel and features. Also QNX – the platform BlackBerry’s own successful tablet the Playbook is based on, should get a more important role in the company’s product line.

RIM should report its quarterly results on September 15th and the we should be able to see the costs of this cost-cutting move for the company.

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