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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