Blackberry to cut 4,500 jobs, leaves consumer market

Blackberry have just announced that they will cut 4,500 jobs worldwide, which is, as previously rumoured, 40% of their total workforce. Following an announcement of a $950 million loss in Q2, the company appear doomed. Trading of shares were halted earlier today, which started much speculation over what could be happening.

The company will also leave the consumer market by altering their lineup. They will begin selling only four devices, including two high-end and two entry-level devices, each in full touch screen or with a physical QWERTY keyboard. The Z10 will be treated as entry-level, replaced by the recently announced Z30 on the higher end of the spectrum.

In their press statement, they explained a change in strategy and focus on the prosumer market, which will aid them in cutting costs of up to 50% by 2015. 

Furthermore, the Company also announced that it is targeting an approximate 50% reduction in operating expenditures by the end of the first quarter of Fiscal 2015. As part of this, BlackBerry will implement a workforce reduction of approximately 4,500 positions or approximately 40% of the Company's global workforce resulting in a total workforce of approximately 7,000 full-time global employees.

Financial results released today fell up to 50% short of many analysts' expectations, and have shocked the industry. The dismal numbers include a loss of $950 million. Blackberry sold a total of 5.9 million smartphones to consumers in Q2, 1.5 million less than Nokia and 25.3 million less than Apple.

Blackberry have been struggling for some years now, following a very mediocre release of Blackberry 10 and compatible devices. Nevertheless, they recently announced availability of Blackberry Messenger on iOS and Android at the end of this month. Blackberry are finally dying, for good this time. We'll be sad to see what was once such an influential company slowly disappear, but they have now blown all chances at revival.

Source: Blackberry

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I just got my first blackberry 2 weeks ago for work. I actually like it a lot, I see why so many people liked the physical keyboards. Shame to see this happen to the company.

I considered them dead years ago. Same with Apple I am sure they will fade away over the next few years unless they get a kick up the ass by stealing some more ideas.

Sad sad day that so many jobs will be lost, won't be long until we have a "going into administration" message. No one will buy it out to keep it going, i am sure bits will be braught for the patents and such though. Still more job loss's on the way.

j2006 said,
I wonder what will happen to all those people that bought those Z10s and Q10s lol
Problem appears to that hardly anyone did buy them as most of their sales were said to be older Blackberry 7 devices.

recursive said,
And Mokia will follow them to the grave in 3... 2... 1...

Hold your breath. You'll be dead before MS goes under. BB was just BB and BB alone. MS is has it's hands in LOTS of things; Enterprise, consumer, gaming, etc. So no, not 3,2,1...

The WP8 market is small but it's increasing whereas BB was diminishing prior to and after the new hardware/software. I don't think it'll ever beat Android at this point but it might well give Apple a run for their money eventually.

Bottom line is that MS wants it to work but if it doesn't they won't go under. They won't give up on it because it's too much to ignore. Mobile just isn't going away. They were very late but hey, better late than never.

vcfan said,
looking forward for the HTC article

We'll see what HTC can do but I honestly think the smartphone market will shrink as far as number of OEMs in it goes with time. The ones who only do phones, RIM, Nokia, HTC etc and have nothing else to support them are the ones that have had it hardest so far.

Even companies like LG might exit though they have their other businesses to support their phone side so they could stick around longer. We'll see how the market is in a few years.

In fairness, they missed the smartphone market by a mile. So did Microsoft.

The only thing they had going for them was certification for secure (government/military) uses which numbered in the millions worldwide but they have now been matched in that arena by >ios6 and custom andriod builds so they have nothing left going for them.

They have everything going for them now imo, the hardware, more recently the software, they hit the market spot on, they just did a bad job at the marketing end of it all.
IOS and Android are the 'old', widespread OSes, both BlackBerry and Microsoft have a lot of catching up to do, and sadly BB has given up.

Maybe, I can't comment as not used any new BB devices. But I *do* know they have lost their core market before, government/secure uses, ios and custom android builds have taken that now.

They have been so slow, it is unfortunate.

Ryano121 said,
Who still remembers when everyone used to want/have a Blackberry....

I do but for some reason, even in those days, I hated every blackberry phones...

I agree on this. Had Nokia stayed with Symbian, I think they wouldn't get the financial assistance from Microsoft --which leads to the acquisition.

This further proofs how fickle the consumer market is. You have to innovate and make your customer happy to stay relevant. Brand loyalty does not dictate how consumer's spending, if there's a better product in their mind, they'll go for it. In fact, at the end of the day, consumers will choose what benefit them the most --practically and economically.

It's very sad though. I feel sorry for the employees that have lost their job. I hope they could find another job.

I hope you're kidding? Have you actually used BB10? The hardware has never been a problem, and since BB10 OS the software isn't a problem either! Android is widespread and it works, but just barely. BB10 is far superior to Android, but since BlackBerry has been too late with BB10 the consumers are hard to convince, they're essentially blinded by IOS/Android.
Switching to Android would be a good marketing move, but a huge step back in OS quality!

BAV0 said,
I hope you're kidding? Have you actually used BB10? The hardware has never been a problem, and since BB10 OS the software isn't a problem either! Android is widespread and it works, but just barely. BB10 is far superior to Android, but since BlackBerry has been too late with BB10 the consumers are hard to convince, they're essentially blinded by IOS/Android.
Switching to Android would be a good marketing move, but a huge step back in OS quality!

It's a snark jab at constant "analysts" who seem to think the answer to everything is to switch to Android.

Ah, finally someone with common sense!
(I've been arguing over this with the the Apple fanboys at the verge, can you tell? )

I think the BB10 software is very nicely done except the company just can't seem to understand you have to make usability issues a priority. They're still in the commercial mindset that if there's a workaround then changing it is a low priority. A simple example is why do I need to re-select my save directory every time I upload an image to dropbox? It works, yes, but it's tedious to use.

That's true, but at least BlackBerry does push out regular updates, to everyone, not like the fragmented android ecosystem...
But the commercial/business mindset is indeed a problem, it's the same reason why their marketing for the Z10/Q10 failed...

Your RIP is premature. Its' a large company with a lot of room to shrink into the current revenue. Of course stockholders don't like holding a shrinking company so may push for a sale.

Spicoli said,
Your RIP is premature. Its' a large company with a lot of room to shrink into the current revenue. Of course stockholders don't like holding a shrinking company so may push for a sale.

Unfortunately, it isn't that large a company anymore... With all of the layoffs over the last few years, they are a shadow of their prior existence, and there isn't much room to shrink further...

>THIS +1

Very valid point - Enterprise and Consumer are no longer walled gardens. BYOD is changing the very fabric of how devices work - and both Apple and Microsoft understand this.

*The absence of Google in that statement was intentional. Google Apps is submitted as proof they don't understand the enterprise; and Youtube as proof they don't understand consumers (Recent blockage of the Windows Phone App for Youtube).

Christopher Bruscato said,
*The absence of Google in that statement was intentional. Google Apps is submitted as proof they don't understand the enterprise; and Youtube as proof they don't understand consumers (Recent blockage of the Windows Phone App for Youtube).

Could you please explain what you mean by Apple understand this? I am not trying to argue but been trying to adopt Apple in the enterprise and they have been very difficult.

siah1214 said,
Who didn't see that coming? Probably only the folks over at crackberry.

Actually the folks at Crackberry are very down to earth and knows that BB isn't doing so well. Thanks for the concern though,

fusi0n said,

Actually the folks at Crackberry are very down to earth and knows that BB isn't doing so well. Thanks for the concern though,

Maybe in the last month or so. Mostly all I've seen is "just wait, we'll come back" and "it's gonna be ok guys"... all very touching but unrealistic.

Not really, no. I've been registered there for a good few months now and people appreciate it may be the end for a while. It is exactly as the article put it, people have realized BB10 hasn't done that well. So yes, you are just trolling,