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RIM Announced Layoff of 2,000 Employees

BEIJING: RIM  plans to cut about 2,000 employees, accounting for 11% of the total number of employees. This is the first time RIM disclosed the details of layoffs since it announced layoffs last month.

Analysts of Isp.org.cn said the number of layoffs is a little more than the original forecast. However, this layoff is critical for RIM to reverse the declined market share caused by Apple and Google’s competition.

Isp.org.cn also points out that the one-time cost of laying off employees is not included in the earnings forecasts of the second fiscal quarter and the whole fiscal year. RIM will explain the financial impact of the cuts in the second-quarter financial report on September.

The experts of Isp.org.cn analyzes that RIM said the job cut is a prudent and necessary step for its long-term success. RIM also announced a series of changes of the executive responsibilities and the executives will leave recently. RIM said the chief operating officer Don Morrison will retire. Morrison is currently on the temporary sick leave. He has spent 10 years working in RIM.

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