Research In Motion, the Canadian company known for its Blacberry devices, has slashed 11 percent of it workforce translating to 2000 job cuts.
Once the dominant leader in its market, RIM is now left with cost-cutting measures as Apple and Android continue to increase their hold on the mobile market.
But there are doubts about whether cost-cutting alone is enough to see through RIM’s decreased financial performance.
According to Charter Equity Research analyst, Ed Snyder, “The problem is you can’t cut your way into growth or market leadership, and while I’m sure there was fat at RIM, the core problem sits squarely with management.”
Changes on the executive level were also announced. As COO Don Morrison is retiring, the remaining to would assume the additional responsibilites.
“Cost-cutting is unlikely to change the competitive position for the company or accelerate RIM’s revenue growth,” analyst Colin Gillis said.
However, analysts still recognize that cost-cutting is still a necessary step to help the company face its new challenges.