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RIM to cut 2000 jobs

The ailing smartphone manufacturer is said to be looking at cutting 2000 jobs on June 1, which is one day before its quarterly financials

The Waterloo based firm is looking at cutting 2000 more staff.
The Waterloo based firm is looking at cutting 2000 more staff.

Research in Motion plans to cut more than 2,000 staff next month according to reports in ‘The Globe and Mail'.

The report suggests that RIM is struggling to cope with quarterly losses and reduced demand for its devices.

RIM hires 16,500 employees worldwide, and the cutbacks are approximately 12% of its total workforce. In addition to the 2000 employees RIM fired earlier, this accounts for a loss of nearly quarter of its workforce.

The job cuts "will sweep across departments, ranging from senior positions in RIM's legal division to human resources, finance, sales, and marketing," according to the report.

The layoffs are expected to start around June 1, before RIM announces its quarterly financial results. It is said that these cuts could save RIM $1bn, however some say it is only a short term solution. In Q1 2012, RIM lost $12.5m and experts expect those losses to accelerate following the smartphone manufacturer's abysmal sales.

Many analysts believe that RIM's only hope is its BB10 OS, however others feel that even BB10 may not be enough to revive the dying giant.