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.
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