Wall Street Journal: BlackBerry to Slash Its Workforce by Up to 40%
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September 18, 2013, 1:55 p.m. ET.
BlackBerry to Slash Its Workforce by Up to 40%
The Layoffs Will Cut Across All Departments, Likely Affecting Several Thousand Employees.
By WILL CONNORS
TORONTO—BlackBerry Ltd. BB.T -1.52%is preparing to make deep staff cuts by the end of the year via layoffs that could cost up to 40% of its employees their jobs, people familiar with the matter said.
The layoffs will cut across all departments and will occur in waves, likely affecting several thousand employees, the people said. They come as the once dominant smartphone maker looks for ways to get a handle on costs and shrink its operations to better fit a world in which competitors like Apple Inc. AAPL +1.76%and Samsung Electronics Co. 005930.SE -2.74%have eaten deeply into its market share.
"Organizational moves will continue to occur to ensure we have the right people in the right roles to drive new opportunities in mobile computing," a BlackBerry spokesman said. The spokesman declined to comment on the 40% figure.
BlackBerry had 12,700 employees as of this March, the last time it disclosed a total number.
The scale of the planned layoffs paints a stark picture of just how far the Waterloo, Ontario-based company has fallen. Just two years ago, BlackBerry had more than 17,000 employees and 14% of the U.S. smartphone market, according to IDC. Now, it has less than 3% of the U.S. market.
BlackBerry swung to a $646 million loss last year as its revenue plunged 40%, to $11 billion. This year hasn't started out much better. The company shed 4 million subscribers and posted a loss of $84 million in the quarter that ended June 1, and said it expects to show another operating loss when it reports earnings next week. For the first time, the company won't disclose its subscriber numbers next week.
Loss was $220 million .... NOT $646 million, according to financial fundamentals at TD Waterhouse.
WSJ is now owned by Murdoch group of rascals and hackers and is no longer a source of accurate information..
Something must have happened ... why cut some many employees? If you sell some parts to the potential buyers, the buyers still need the employees to keep the sold business running .... also, why cut if there is no deal announced ? The deal may not be approved by shareholders if the price is too low .... IMHO.