RIM Management Shake-Up Boots Out Long-Time CEOs
Research in Motion, maker of the struggling BlackBerry smartphones, announced on Sunday the resignation of the company's two CEOs following series of disappointments that saw the once leading firm lagging behind from competitors.
In a statement, RIM said that Mike Lazaridis and Jim Balsillie both tendered their resignations from the top post of the Canadian firm that they co-founded in 1984.
The two, however, will remain on RIM's board, with Lazaridis assuming his new role as vice chairman and chief of the company's innovation committee while Balsillie retains a seat.
In his statement, Lazaridis acknowledged that RIM has entered a transition phase and "and we felt it was time for a new leader to take it through that phase and beyond."
"There comes a time in the growth of every successful company when the founders recognize the need to pass the baton to new leadership," the former chief executive added.
Balsillie affirmed the declaration made by long-time partner, explaining the surface reasons of their departure, which was long demanded by RIM investors who are growing weary on the company's sliding fortunes.
"I agree this is the right time to pass the baton to new leadership, and I have complete confidence in Thorsten, the management team and the company," the other former CEO said.
He was referring of course to Thorsten Heins who immediately assumed the job that the duo had relinquished following RIM's increasing declines that relegated the company to the bottom rung of the lucrative mobile device industry.
As the sector saw the emergence of handsets powered by Apple and Google, RIM seemed unable to come to terms with the trend of competition as it struggled to play the field that mostly saw the introduction of better-looking and feature rich gadgets in breathtaking speed.
The past year saw the erstwhile industry leader playing catch up to its rivals and when it did, its efforts flopped such as the case of the PlayBook, RIM's rather anemic take on the tablet computer race.
Experts noted that the best news that came out lately about RIM is the likelihood that bigger tech firms are interested to buy the iconic company, whose innovative smartphone products were once synonymous with the function itself.
Speculations have earlier emerged that Microsoft and Nokia were both interested to rescue the company from demise and relive its once high status when executives and ordinary consumers craved for the BlackBerry logo.
Those days were virtually gone but Heins, who was plucked by RIM from Siemens more than four years ago, has maintained his optimism.
Despite dwindling market shares and values, Heins said that RIM can still look ahead for a brighter future on the back of its latest good earning numbers.
In a statement, the new RIM CEO reported that RIM's revenue reached "$5.2 billion in our last quarter, up 24 percent from the prior quarter, and a 35-percent year-to-year increase in the BlackBerry subscriber base, which is now over 75 million."
"We have a strong balance sheet with approximately $1.5 billion in cash at the end of the last quarter and negligible debt," the German executive added.
In his quest to revive RIM's glory days, Heins will be aided by Barbara Stymiest, a veteran finance executive picked by the company as the new chairman, another position that the co-founding duo of Lazaridis and Balsillie were forced to give up.