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Tuesday, 29 May 2012 - RIM's top lawyer joins parade of resignations |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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Picture taken April 18, 2012. Credit: Reuters/Mark Blinch By Alastair Sharp TORONTO | Mon May 28, 2012 3:57pm EDT TORONTO (Reuters) - The top lawyer at Research In Motion Ltd has resigned and will soon leave the struggling BlackBerry maker, RIM said on Monday, joining a parade of long-time company executives to depart since Thorsten Heins took over as CEO earlier this year. The loss of Chief Legal Officer Karima Bawa - who litigated numerous patent disputes and helped write many of RIM's commercial deals - follows the resignation of RIM's head of global sales, Patrick Spence, last week. "Thorsten Heins is reframing the RIM organization. Not everyone will fit into the new picture," said IDC analyst Kevin Restivo. "Departures, forced or otherwise, are inevitable anytime management sets a new course for an organization." The resignations come ahead of what are expected to be massive layoffs this year as the company prepares to launch BlackBerry smartphones run by an operating system completely different from that used in its legacy phones. RIM's shares have fallen some 75 percent in the last year while its market share has shriveled against competition from iPhone maker Apple Inc and a slew of manufacturers using Google Inc's Android operating system. RIM's Toronto-listed rose 0.9 percent to C$11.34 late Monday afternoon. The company's Nasdaq-listed shares were not trading due to a U.S. holiday. Bawa, who joined RIM in 2000, was promoted to general counsel and chief legal officer in late 2010. She plans to stay with the company while a replacement is hired and during a transition, RIM said in an emailed statement after Reuters asked about Bawa's status. Analysts and former employees have long complained about what they viewed as a hyper-cautious corporate approach at RIM. That grew out of a drawn-out patent dispute early in the company's rise and was exacerbated by the hiring of a slew of in-house lawyers afterwards. CLEANING HOUSE RIM is quietly cleaning out layers of management and recruiting fresh faces to fill important roles in a new structure being fashioned under Heins, who himself replaced longtime co-CEOs Mike Lazaridis and Jim Balsillie in January. "Thorsten has a very different leadership style," said one former RIM employee who left several months ago. "He is picking a very specific organizational structure, inner circle, external hires and strategy, and a lot of folks aren't 100 percent comfortable with it." The former employee spoke on the condition of anonymity to protect his ongoing business relationship with the company. The Waterloo, Ontario-based company currently employs around 16,500 people globally. Two sources with close connections to RIM have told Reuters that RIM plans to bring its workforce closer to 10,000 by early next year. The sources asked to go unidentified because their disclosures would hurt their relationships with RIM. The cuts will affect RIM's legal, marketing, sales, operations, and human resources divisions, one of the sources said. "The Research In Motion people have come to know is very likely to be a much smaller organization in the near future," said IDC's Restivo. "It's a reflection of the company's smartphone struggles. Call it an trailing indicator if you will." RIM's share of the global smartphone market slipped to 6.7 percent in the first quarter of 2012 from 13.6 percent a year earlier, according to IDC. A round of 2,000 job cuts was planned for around June 1, the day before the end of RIM's quarter, the Globe and Mail said on Saturday, citing several people close to the company. Last July RIM said it cut 2,000 jobs, after its worker count ballooned to near 20,000 following a string of acquisitions in recent years. Balsillie remains the departure with the highest profile. While cutting all formal ties to the company, he remains a major shareholder. Lazaridis is still influential on the board. A chief operating officer, Jim Rowan, and the head of software David Yach left in March. Soon after, Alan Brenner, a senior vice president for the BlackBerry platform, and Alistair Mitchell, vice president for the BlackBerry Messenger instant messaging product, also left. The head of RIM's India unit left in November, its head of government relations left months before that, and former chief marketing officer Keith Pardy departed more than a year ago. RIM said this month it had replaced Pardy with wireless veteran Frank Boulben, who has yet to start work. It has also named Kristian Tear as its single chief operating officer. He replaces Heins, who took the CEO job, Rowan, who departed, and a third operating head, Don Morrison, who retired last year. (Editing by Frank McGurty) Tech Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (1) rdinTempe wrote:   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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