BlackBerry Laying Off 4,500 Employees

Today, BlackBerry (NASDAQ: BBRY  ) announced preliminary results for the quarter that ended August 31, and that it anticipated it would have a net loss of almost $1 billion. In addition to the announced loss, it also stated it would have layoffs of approximately 4,500 employees, or approximately 40% of its workforce.

The company noted that, as a result of these and other restructuring initiatives, it hopes to reduce its operating expenses by 50% by the end of the first quarter of the 2015 fiscal year.

The company expects second quarter revenue of $1.6 billion, versus revenue of $3.1 billion last quarter, and $2.3 billion for the same period last year.

President and CEO of BlackBerry Thorsten Heins stated in the release:

We are implementing the difficult, but necessary operational changes announced today to address our position in a maturing and more competitive industry, and to drive the company toward profitability. Going forward, we plan to refocus our offering on our end-to-end solution of hardware, software and services for enterprises and the productive, professional end user.

It also stated the Special Committee of its Board is continuing to "evaluate strategic alternatives."

Trading of BlackBerry shares were halted earlier today on both the Nasdaq and the Toronto Stock Exchanges, and the stock fell 17% on the news.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 20, 2013, at 5:56 PM, OracleofOmahaha wrote:

    It also stated the Special Committee of its Board is continuing to "evaluate strategic alternatives." Yeah they are evaluating how they can all get their golden parachutes and get the hell out of this dead company. So where are the bbry pumpers / syncophants now saying everything is alright....crickets, crickets.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2647738, ~/Articles/ArticleHandler.aspx, 11/24/2014 4:53:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement