RIM CEO plans no drastic changes

Heins says he is looking to hone current strategy rather than redesign it

Tags: AppointmentResearch In Motion
  • E-Mail
RIM CEO plans no drastic changes RIMs new CEO Thorsten Heins says he is not planning any drastic changes to the company. RIMs shares have fallen 8% since his appointment.
By  Georgina Enzer Published  January 24, 2012

Research In Motion's new CEO Thorsten Heins has said that there will be no drastic changes at the company, according to Reuters.

Investors have said that Heins only has 12 to 18 months to turn the ailing company around.

RIM's shares slumped over 8% as investors wondered whether Heins would be able to reverse the company's decline.

"I don't think that there is some drastic change needed. We are evolving ... but this is not a seismic change," said Heins, who joined RIM in 2007 and previously served as a chief operating officer.

RIM's co-CEOs Mike Lazaridis and Jim Balsillie resigned on Saturday after intense investor pressure, the two were seen as a stumbling block in the way of the sale of the company, although Heins said that he is not interested in a sale.

RIM has lost market share and market value in recent months after being outplayed by both Apple and Google.

"If Thorsten really believes that there are no changes to be made, he will be gone within 15 to 18 months. He will be a transitional CEO and this will be a transitional board," Jaguar CEO Vic Alboini, told Reuters.

Alboini leads an informal group of 16 RIM shareholders calling for a radical restructuring in the company. The group holds a little less than 10% of RIM's stock.

Heins has said that he will work on honing the current RIM strategy rather than abandoning it. He added that the company needs to start acting like a mature business, not a start-up.

The new CEO said no further job cuts were currently planned and that with RIM's $1.5 billion in cash he had no qualms in spending on the right projects.

"If I have a great strategic project or a good business case I can go to the board anytime and ask for approval for additional investment and the money's in the bank to do this," he said.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code