RIM Takes Motorola To Court Over Jobs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
IT Leadership // Team Building & Staffing
News
12/29/2008
04:34 PM
50%
50%

RIM Takes Motorola To Court Over Jobs

Motorola is trying to keep the BlackBerry maker from hiring fired or soon-to-be fired employees, RIM said in a lawsuit.

Motorola's handset division continues to suffer, and the company has announced more than 3,000 job cuts. But those employees may have a tough time getting a new job with competitors due to nondisclosure agreements.

Because of this, Research In Motion filed a lawsuit last week claiming Motorola improperly blocked the BlackBerry maker from hiring employees Motorola has already fired or plans to terminate. The suit stems from an agreement the companies signed in February, where the mobile phone manufacturers agreed to not solicit each other's employees.

But RIM said the agreement expired in August, and it's asking the court to invalidate the pact. The company is also seeking unspecified damages from Motorola for what it said are improper and unfair competitive practices.

"RIM entities continue to grow and hire new employees within the United States and globally against a backdrop of recent public announcements by Motorola that it has and will continue to make massive layoffs," RIM said in the lawsuit.

The lawsuit comes as Motorola is restructuring to rein in costs, as the handset division has lost nearly $2.8 billion since the start of 2007. The company recently said it would be slashing executive pay and trimming employee benefits to control costs.

"The sustained downturn in the global economy requires that we take these difficult but necessary steps," said co-CEO Sanjay Jha in a statement. "While serving our customers remains a top priority, we are equally focused on our cost structure, and we will continue to implement appropriate measures to conserve cash and reduce expenses."

RIM appears to be going in the opposite direction, though, as the success of high-profile releases like the BlackBerry Bold and the touch-screen Storm have lead to more BlackBerry subscribers, and increased revenue during the last quarter.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Slideshows
How Startup Innovation Can Help Enterprises Face COVID-19
Joao-Pierre S. Ruth, Senior Writer,  3/24/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
Slideshows
Flash Poll