RIM responds to employee letter calling for major restructure

BlackBerry maker Research In Motion has taken the unusual step of responding to a letter recently posted online by an anonymous employee, urging the company to make drastic changes to its strategy and management and comparing the workplace culture to Soviet-era Russia.

But while the company has responded to the lengthy, eight-point letter, it also announced overnight it will establish a committee to investigate a proposal to split the chief executive and chairman roles – a hint the Canadian handset maker may be listening to outside criticism.

RIM said whether the letter, first published on Boy Genius Report, is fake or real, “it is fair to say that the senior management team at RIM is nonetheless fully aware of and aggressively addressing both the company’s challenges and its opportunities.

“RIM recently confirmed that it is nearing the end of a major business and technology transition,” it said.

“Although this transition has taken longer than anticipated, there is much excitement and optimism within the company about the new products that are lined up for the coming months.”

The letter says RIM’s management is confident it can overcome its challenges, and highlighted its $3 billion in cash reserves and “strong profitability”.

It is a curious response to the letter, allegedly published by a high-level employee, which said the worker had lost confidence in the company, particularly as more products fall behind schedule.

The alleged employee says RIM needs to cut projects “to the bone”, expand marketing power, and even claims that due to Canadian culture, the company has a lot of people who underperform but are still able to keep their jobs.

“It’s time to change the culture to deliver or move on and get out. We have far too many people in critical roles that fit this description.”

The writer also says employees need to be more involved in the company, stating: “Headhunters have already started circling and we are at risk of losing our best people”.

RIM’s response exudes confidence and certainty, despite acknowledging “it has become necessary for the company to streamline its operations in order to allow it to grow its business profitably”.

The fact the BlackBerry maker has responded to the letter represents how mindful the company is of its public image. Over the last few weeks more analysts have questioned whether RIM will be able to maintain its market share.

Despite the PlayBook tablet releasing to fairly positive reviews (and half a million sales), RIM has downgraded profit forecasts and its stock is trading at five-year lows. And according to various research agencies, it’s losing share fast to Google and Apple.

Such trends have prompted analysts to question whether RIM can survive in the current smartphone environment – one piece on TechCrunch debates whether the company will even be around in two years.

But it appears RIM is listening. Shortly after it released a response to the letter, it announced it would consider splitting the chief executive and chairman roles ¬– one of the recommendations contained in the employee’s letter.

“RIM’s board will establish a committee of independent directors whose mandate will generally be to study the appropriate balance between an independent lead director or chair with full and exclusive authority customarily held by such an office holder,” RIM said.