Please ensure Javascript is enabled for purposes of website accessibility

Instant Analysis: BlackBerry Confirms Small Number of Layoffs

By Evan Niu, CFA - Feb 5, 2016 at 4:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Canadian mobile-security specialist is laying off off about 200 workers, which is less than media reports had suggested.

What happened?
Following a report from Mobile Syrup that BlackBerry (BB 3.64%) would be laying off a "significant" portion of its employees at its Waterloo headquarters, the company has officially confirmed that there were some workforce reductions but much less than reported.

The initial report suggested that upwards of 35% of employees at the Waterloo headquarters could get laid off, which would have translated into nearly 1,000 workers going home without a job, in addition to a few in its Sunrise, Florida, office. BlackBerry clarified that only around 200 total employees in Canada and Florida were affected by the job cuts.

Does it matter?
The job cuts make sense in the context of BlackBerry's ongoing turnaround and strategic shift in direction. BlackBerry has been aggressively focusing its efforts of enterprise security software, and even its handset hardware strategy has changed dramatically with the adoption of Android.

Reiterating that the job cuts are less than what's being reported is important from a damage-control perspective. Shares did fall today by about 4%, but the broader market sold off quite a bit, particularly tech companies with exposure to enterprise customers. BlackBerry also pointed out that the company is still actively recruiting for talent in the other areas of its business that it expects to drive growth going forward.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

BlackBerry Stock Quote
$5.84 (3.64%) $0.20

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/06/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.