BlackBerry maker Research In Motion moved Monday to cut 2,000 jobs to survive competitive pressures in a market that it once dominated.
Apple’s iPhone and Google’s Android have gobbled up RIM’s market share, especially in the U.S., pushing the company to take such a step. RIM said the job cuts are "a prudent and necessary step" for its long-term success. The reduction will leave the Canadian company with about 17,000 employees.
"This is not totally unexpected. I think the size of (the cuts) is a little bit bigger than what they were intimating before," said Jefferies & Co. analyst Peter Misek. "I think this is obviously realigning the cost structure to a new growth, or sales reality."
Some shareholders criticized RIM's strategy. “Steve Jobs is a better marketer than RIM,” said Stephen Jarislowsky, chairman of Fraser Ltd., the company’s sixth largest investor.
RIM's business strategy has been criticized since the company announced its quarterly results in June. The company plans to provide further details on the job cuts when it reports second-quarter results on Sept. 15.