BlackBerry to lay off as many as 40% of its workers

BlackBerry to lay off as many as 40% of its workers
BlackBerry is considering cutting its head count by as much as 40%, according to sources inside the loop. The sources say that the layoffs will be conducted across the board and will take place at different times of the year. A published report on Wednesday said that thousands of jobs could be eliminated. As of March, the last time that the figure was disclosed, the company had 12,700 employees. Two years ago that figure was 17,000 when the company owned 14% of the U.S. smartphone market, a figure that is now down to 3%, according to IDC.

Last year, BlackBerry lost $646 million as revenue dropped 40% to $11 billion. In the most recent quarter, the company lost 4 million subscribers and reported a loss of $84 million. Another loss is expected when the company reports its latest quarterly earnings next week. This is happening despite the company's launch earlier this year of the new BlackBerry 10 line. Indications are that the phones are not selling well, and on Wednesday morning BlackBerry introduced its first 5 inch model, the BlackBerry Z30.


BlackBerry's board is looking to sell the company, hopefully before November. Despite the larger screen, and improved battery life on the BlackBerry Z30, there is nothing about the phone that makes one think that it might be able to staunch the bleeding at the Canadian handset manufacturer, which is why the job cuts will be necessary.

source: WSJ

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10 Comments

1. Legnaldo

Posts: 63; Member since: Oct 17, 2011

I hope the head honchoes took a pay cut before causing more unemployment. Wishful thinking?

2. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Why would they want to lower themselves to the level of the unwashed masses they are letting go? The executives have to uphold their standard of living (not mention keep their golden parachutes funded). Sh*t rolls downhill and what-not.

3. ZeroCide

Posts: 810; Member since: Jan 09, 2013

The end is Near!!! Will it survive till the end of 2013?

4. suneeboy

Posts: 201; Member since: Oct 02, 2012

Blackberry 10 took too long to come out. Everyone forgot about them. Now, no one cares. I feel sorry for the folks who will lose their jobs.

5. AfterShock

Posts: 4146; Member since: Nov 02, 2012

Do it after Xmas/New years. It's not that far off.

6. Mxyzptlk unregistered

And the ship continues to sink

7. Trismegistus

Posts: 32; Member since: Aug 21, 2013

In spite of my dislike of various Fans clamoring for the demise of another OS, it's enjoyable to watch an actual sinking ship.

8. HASHTAG unregistered

With rumors that they're looking to sell soon, a lot of potential customers would be skeptic about purchasing ANY BB smartphone knowing that if they buy it, they may lose support in the near future and be stuck with it, especially if they're locked into a contract.

9. cornerofthemoon

Posts: 620; Member since: Apr 20, 2010

Sad but inevitable. BB10 was just too late to the party.

10. Glim12808

Posts: 394; Member since: Oct 26, 2011

The Z30 had already been officially announced in Malaysia and will be available there first and in Indonesia. I wish I could say otherwise, but I believe the Z30 will not stave off the impending 40% lay off because the phone will have the same faith as the Z10 and Q10. It is essentially a bigger Z10 so unfortunately nothing to get excited about. The Z30 will compete almost at the same time and in the same price range as the "new" iPhone 5C (more or less the iPhone 5 in a new colorful dress so maybe not so new) and I reckon the people in those 2 countries will be more excited over the iPhone 5C than the Z30.

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