John Paczkowski

Recent Posts by John Paczkowski

The Axe Swings at RIM

Layoffs have begun in earnest at Research In Motion.

As AllThingsD reported in late May, RIM had been furtively sacking small groups of employees in the hopes of keeping the cuts quiet. This week it dropped that pretense and began making larger cuts as it struggles to improve its lousy financial performance.

Sources say that so far the layoffs have targeted operations, sales and manufacturing, but as we reported earlier they’re likely to end up being companywide, with every division — from marketing and sales to legal and operations — taking some kind of hit.

Reached for comment, RIM confirmed that layoffs are occuring, but declined to say how many. “RIM has committed to achieving significant efficiencies and operating cost reductions over the course of this fiscal year,” a RIM spokesperson Tenille Kennedy told AllThingsD. “Head count reductions are part of this initiative. RIM has reduced some positions as part of this program and may continue to do so as the company methodically works through a review of the business.”

And, to be fair, RIM did say as much — euphemistically — earlier this year when it CEO Thorsten Heins vowed to streamline operations and save $1 billion by the end of fiscal 2013. The plan for hitting that target, as I noted back in May: “Primarily by optimizing the cost position of our products and services and improving overall resource effectiveness and organizational efficiency.”

“Improving overall resource effectiveness and organizational efficiency.” And as we all know, there’s really only one way to do that.

RIM promises to provide a business update when it reports Q1 FY13 results on June 28, 2012.


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