BlackBerry Forced to Make More Staff Cuts, Answer to Shareholders at Annual Meeting
July 10, 2013 6:25 AM
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The annual shareholder meeting also marked the official name change of the company from Research In Motion (RIM) to BlackBerry
BlackBerry was hoping that its new BlackBerry 10 (BB10) operating system would pull it out of a drowning state, but it doesn't look like the new OS and devices were a miracle cure for the Canadian company.
At BlackBerry's annual shareholders meeting yesterday, company CEO Thorsten Heins had to explain to investors that BlackBerry is still in its early stages of recovery, and that a key part of bringing BlackBerry back is to continue making cuts across middle management in the sales and support departments.
Some of the more recent cuts were Richard Piasentin, BlackBerry's vice president for sales in the U.S. He was terminated just last month.
These new cuts will be in addition to the 5,000 layoffs that occurred last year.
BlackBerry's plan to thin the herd is part of a restructurng process aimed to increase sales and market share of BlackBerry products. Shareholders were disappointed to hear lower-than-expected earnings for BlackBerry last month, and that BB10 devices weren't gaining any ground on the popular iPhone or Android offerings.
For Q2 2013, BlackBerry
posted a loss
of $84 million USD ($0.13 per share) while analysts at
expected a profit of about $39 million USD ($0.06 per share). BlackBerry also disappointed when it came to revenue with $3.1 billion USD (analysts expected $3.4 billion USD).
To make matters worse, BlackBerry only sold 2.7 million BB10 devices during the quarter, when analysts expected over 3.5 million.
Shareholders haven't been kind since, and they wanted answers during the annual meeting.
"We obviously did not deliver what many analysts and investors expected in the short term," said Heins. "We're driving night and day to deliver improvements."
One shareholder even said that the Z10 launch was a "disaster" in the U.S., but Heins insisted that it was the fault of carriers who only promote sales of top guns like the iPhone and Android-powered Samsung Galaxy phones.
In May, International Data Corporation's (IDC) Worldwide Quarterly Mobile Phone Tracker said that Microsoft's Windows Phone was in third place after Android and iOS-powered smartphones in the U.S. --
successfully passing BlackBerry
, who previously held the No. 3 spot.
The annual shareholder meeting also marked the official name change of the company from Research In Motion (RIM) to BlackBerry, and the fact that BlackBerry board members John Wetmore and former chairman John Richardson wouldn't seek re-election to the board.
The Wall Street Journal
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RE: its a dead phone
7/10/2013 3:12:53 PM
The whole BB10 thing is kind of unfortunate because it is a great OS running on great hardware. But there are some major flaws.
I setup a Z10 for a client and although he hated it at first, it uses a lot of gestures from WebOS (which was his previous phone) and he quickly got used to it.
I setup a Z10 for a client who was comming from a Bolb 9970 and he hated, and still hates it. It's a complete 180 from anything RIM has done before. It's basically their Windows 8 situation.
The inherent flaw is there is no "legacy" interface option which alienates previous Blackberry users. They are looking for a similar experience to what they know, not something completely new.
The minor flaws that could potentially be fixed come down to apps. There are none. The navigation is complete crap. It is incredibly slow and feature-less. Google Maps could potentially save this phone, because I've heard of people actually returning it
solely for poor navigation
It also needs better desktop software (because BB users like this stuff) and at least some alternative keyboard options (Swype, Swiftkey, etc) since the BB keyboard, although pretty good in my opinion, is again, a big 180 for anybody coming from a previous touch-screen Blackberry.
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls
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