BlackBerry Forced to Make More Staff Cuts, Answer to Shareholders at Annual Meeting
July 10, 2013 6:25 AM
comment(s) - last by
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
This article is over a month old, voting and posting comments is disabled
RE: its a dead phone
7/10/2013 5:08:10 PM
When you use your Android phone you are using a Linux phone...
"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
BlackBerry Posts Surprise Loss on BB10 Flop; Only 2.7m BB10 Devices Sold in Q2
June 28, 2013, 2:47 PM
IDC: Windows Phone Passes BlackBerry for Third Place in Q1 Shipments
May 16, 2013, 10:50 AM
Tim Cook Touts Apple’s Product Portfolio, Performance in Letter to Employees
October 21, 2014, 8:05 AM
Buoyed by Strong iPhone Sales, Apple Reports Revenue of $42.1B, $8.5B in Profit for Fiscal Q4
October 20, 2014, 5:21 PM
Windows 8.1 + Android "Sell Mini PC" w/ Bay Trail Creates New PC Form Factor
October 20, 2014, 5:07 PM
OnePlus to Open Pre-orders on October 27
October 20, 2014, 1:34 PM
Apple Releases iOS 8.1; Adds Apple Pay Support, SMS Relay, Instant Hotspot
October 20, 2014, 1:00 PM
Quick Note: Android Gmail App to Gain Yahoo, Outlook Account Support
October 20, 2014, 9:15 AM
Most Popular Articles
Update: Motorola Droid Turbo Coming Oct 28, 48-hour Battery Life Confirmed
October 19, 2014, 9:19 PM
Google Announces Android 5.0 “Lollipop”, Nexus 9 Tablet, and Nexus 6 “Phablet”
October 15, 2014, 12:41 PM
Cool Science Video of the Day: Carnivorous Leech Eats Giant Jungle Worm
October 16, 2014, 6:44 PM
HBO, CBS Lead Charge to Ditch Cable
October 16, 2014, 4:40 PM
PS4 "Masamune" Update 2.0 Will Bring New Music and Customization Features
October 17, 2014, 1:05 PM
Latest Blog Posts
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information