The founders of Research in Motion, Jim Balsillie and Mike Lazaridis, are stepping down as co-CEOs and chairmen of the embattled company.
In a news release Sunday night, RIM's board of directors announced the shake-up and the appointment of a new president and chief executive, Thorsten Heins.
Heins was recruited by RIM five years ago and has served as one of its chief operating officers, among other key positions.
The board said it decided on the drastic management changes "after conducting its own due diligence."
Lazaridis becomes vice-chair of the RIM board and the chair of its new innovation committee.
"As vice-chair, he will work closely with Mr. Heins to offer strategic counsel, provide a smooth transition and continue to promote the BlackBerry brand worldwide," the board said in the release.
The release quotes Lazaridis as saying: "There comes a time in the growth of every successful company when the founders recognize the need to pass the baton to new leadership. Jim and I went to the Board and told them that we thought that time was now."
Balsillie will remain a member of the board.
Pressure had been mounting on Balsillie and Lazaridis to step aside following a year of declining sales and profits for the BlackBerry maker.
The Waterloo, Ont.-based company, which used to be the darling of the Canadian technology sector, took a drubbing in 2011 as its share price dropped along with its market share when a series of blunders forced many to ponder if it had lost its edge in an industry that requires constant innovation.
It disappointed investors even further when it said that its next generation of smartphones -- the QNX-based BlackBerry 10 -- would not be on store shelves until late next year.
"It could not have happened soon enough. The company has lost its way and (Heins) has a mammoth job in front of him," said Conor Bill, president and chief executive at Artemis Investments in Toronto.
The new chair of the board is Barbara Stymiest, who has served as a director of the company since 2007.
