NEW YORK – Faced with tough competition and falling profits, BlackBerry maker Research In Motion Ltd. is cutting 2,000 jobs as part of a cost savings plan announced last month and is shuffling some senior executives.

The job cuts amount to about 10 percent of the company’s work force. The company said Monday it will notify affected employees this week. It expects to give more information on the layoffs when it reports fiscal second-quarter results Sept. 15.

Its U.S. shares fell $1.24, or 4.4 percent, to $26.67. They are close to their five-year low of $25.60, reached Wednesday.

Although BlackBerrys have dominated the corporate smartphone market, their popularity in the consumer market has been short-lived. While RIM’s sales are still growing thanks to BlackBerry adoption overseas, U.S. consumers have moved on to phones with big touchscreens like Apple Inc.’s iPhone and various models that run Google Inc.’s Android operating system.

Last week, Apple reported selling 20.3 million iPhones in the April-to-June period. RIM sold 13.2 million BlackBerrys in the March-to-May period.

RIM has been slow to adapt to the changing winds in the phone market. Last month, co-CEO Mike Lazaridis said the company was already far along in developing its next-generation BlackBerrys when it realized that U.S. customers wanted higher performance, requiring the company to upgrade the chips used. That posed an engineering challenge and delayed products, he said.

The launch of its PlayBook tablet computer, meanwhile, wasn’t as successful as the company had hoped, and phone companies have shown little interest in pushing it.

RIM reported a 10 percent drop in its fiscal first-quarter earnings in June and gave an outlook for the year that was well below what analysts had expected. Co-CEO Jim Balsillie said then that the planned cost cuts were a “streamlining” prompted by the rapid growth of the company and more than a dozen acquisitions.


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