RIM’s downfall started in Q1 2011, when it announced a drop in revenue, coupled with a huge layoff of 2000 employees. Its stocks fell to the lowest since 2006, and on further inspection, it was found that it had been on a downhill journey since 2008. RIM market caps dropped to a record low, and left it in no shape to compete with Android and iPhone. Things became so grave that it set a record for the biggest world-market share loser in 2011.
RIM started this year with approximately 16,000 employees, but now that it wishes to streamline its operations, another layoff is on its way and this one is going to be massive. RIM is about to hand out pink slips to nearly 6000 employees. This will be the largest layoff in the history of RIM, thereby reducing its workforce by 40% (approximately).
RIM announced a strategic review of its business in March. The objective of the strategic review was to refocus the plummeting business of RIM and place it back where it used to be years ago. RIM Chief Executive, Thorsten Heins said,
We believe that BlackBerry cannot succeed if we tried to be everybody’s darling and all things to all people. Therefore, we plan to build on our strength.
Following the trend of top officials like Jim Balsillie, CTO David Yach and COO Jim Rowan leaving for greener pastures, RIM’s global sales head Patrick Spence has resigned recently.
RIM also withdrew its plans for providing its flagship BBM across multiple mobile platforms. This is a clear indication of the fact that RIM lacks focus. If this indeed is true, RIM will need more than layoffs to save itself.