BlackBerry Ltd Announces More Layoffs As Firm's Turnaround Intensifies

 

In a statement emailed to Bloomberg, the Canadian firm said their true objective is to relocate resources so as to can utilize them to exploit growth opportunities, in order, to convert their losses into sustainable profit in every aspect of their business.

 

"As BlackBerry moves into the next stage of its turnaround, we remain focused on driving efficiencies across our global workforce," read the statement. The firm also thanked all those employees who are no more a part of theteam for their hard work, commitment and contributions.

 

According to Valewalk.com, the layoffs were widely expected. At the firm’s stakeholder’s annual meet last month, CEO John Chen said the company is in the middle of their turnaround, and on being asked if there will be more layoffs, Chen said he could not give any guarantee about layoffs.

 

Since taking up the CEO role in November 2013, Chen has minimized the cash issues and posted profits by cutting costs. In May this year, the Canadian firm slashed its headcount with an aim to support its struggling smartphone business.

 

The job cuts can be seen as a sign that Chen is making progress with his turnaround plans. Experts are praising Chen’s strategy, saying the decision is wise  considering the situation. Analysts are confident that experience Chen will help BlackBerry come up with a successful turnaround.

 

Last year, BlackBerry said it had some 2,700 employees in Waterloo region compared to 11,000 in 2011. Though the firm has hired since then in sales, marketing and engineering, it also got rid of some jobs. BlackBerry’s website shows that it had 7000 employees as of September 2014.

 

For the last quarter, BlackBerry witnessed a decline in revenues to $263 million from $379 million last year. The company, which recognizes revenue only after it is sold to the customers, sold 1.1 million smartphones this year versus 2.6 million units last year.

 

On Monday, BlackBerry shares closed down 1.16% at $7.68. Year to date, the stock is down over 30% while in the last twelve months, it’s down almost 24%.

 

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