BlackBerry Lost Nearly $1B During Fiscal Q2 2014, Will Cut 4,500 Jobs
September 20, 2013 4:01 PM
The bad news keeps streaming in for BlackBerry
Wall Street Journal
reported this week that BlackBerry was on the verge of
slashing 40 percent of its workforce
. Today, that news has come to fruition as the company announced that it would lay off 4,500 employees. This will leave BlackBerry with 7,000 employees worldwide.
In addition, the Canadian-based company announced some rather disastrous financials as well. We have been reported for quite some time that sales of BB10-based devices (Z10, Q10)
have flopped since their introduction earlier this year
. But now we know the full extent of the damage -- BlackBerry is taking a non-cash, pre-tax charge of $930 to $960 million primarily due to unsold Z10 smartphones. That figure ranks right up there with
Microsoft's nearly $1B charge for its Surface tablets
When the dust settles on fiscal Q2 2014, BlackBerry is expecting a GAAP net operating loss of $950 to $995 million.
BlackBerry President and CEO Thorsten Heins [Image Source: The Star]
"We are implementing the difficult, but necessary operational changes announced today to address our position in a maturing and more competitive industry, and to drive the company toward profitability," said BlackBerry President and CEO Thorsten Heins. Going forward, we plan to refocus our offering on our end-to-end solution of hardware, software and services for enterprises and the productive, professional end user. This puts us squarely on target with the customers that helped build BlackBerry into the leading brand today for enterprise security, manageability and reliability."
BlackBerry will also transition away from producing consumer-centric smartphones and will instead focus on what it calls "enterprise and prosumer-centric" devices. Its smartphone device-count will drop from six to four, with two high-end and two entry-level smartphones.
Under this new arrangement, the laggard Z10 will become one of the two entry-level models while the
newly announced Z30
will fill in one of the "high-end" slots.
It sad that it had to come to this, but it looks as though we are witnessing the implosion of a once great smartphone company.
"Nowadays, security guys break the Mac every single day. Every single day, they come out with a total exploit, your machine can be taken over totally. I dare anybody to do that once a month on the Windows machine." -- Bill Gates
Report: BlackBerry to Cut 40 Percent of Staff By End of 2013
September 18, 2013, 2:58 PM
BlackBerry Shows Off New, 5" Z30 Flagship Smartphone
September 18, 2013, 6:29 AM
Report: BlackBerry Q10 Sales Looking Dismal
August 29, 2013, 4:31 PM
Microsoft Takes $900M Charge on Surface Flop
July 18, 2013, 6:40 PM
Nintendo Announced Next Game Machine to be Portable “handheld”.
October 21, 2016, 5:00 AM
Do you hate to do yard work?
October 20, 2016, 5:00 AM
Smart Technology Mood Collar To Understand Your Dog’s Emotions
October 17, 2016, 5:00 AM
iBeat: A heart monitoring smartwatch that can save lives by Monique C. Bethell, Ph.D
October 8, 2016, 10:25 AM
How Difficult it is to Buy Electronics
October 7, 2016, 6:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
Most Popular Articles
Problems with Windows 10 – Update Now
October 15, 2016, 7:30 AM
End of the Road for the Audi R8 e-tron
October 15, 2016, 5:00 AM
Is Razer Blade Stealth Laptop For You?
October 16, 2016, 5:00 AM
Bluetooth Saves Lives
October 16, 2016, 7:05 AM
IBM – Cloud Object Storage Cheaper than Amazon S3
October 14, 2016, 5:00 AM
Latest Blog Posts
Nasa Flies Drones at Nevada Airport
Oct 21, 2016, 8:21 AM
T-Mobile Data Problems
Oct 20, 2016, 10:17 AM
Annoying Apple Watch Problems and How to Fix Them
Oct 20, 2016, 5:00 AM
Your Mail May Soon Be Delivered By Robot
Oct 19, 2016, 9:34 AM
2018 Jeep Wrangler Prototype Sells At Junkyard
Oct 18, 2016, 5:00 AM
Samsung Shines with Gold Edition Tablet
Oct 17, 2016, 9:24 AM
Tesla Hints Mysterious Product Debut for October 17th
Oct 16, 2016, 10:14 AM
Samsung Galaxy Note 7 Phones on US flights
Oct 15, 2016, 5:00 AM
Comcast Fined $2.3 Million For Unconfirmed Services Charged To Customers
Oct 14, 2016, 5:00 AM
“American singer / songwriter “Bob Dylan is awarded 2016 Nobel Prize in Literature.
Oct 13, 2016, 10:33 AM
Battery Defect in Medical Device
Oct 12, 2016, 5:00 AM
IBM Bolsters Social Services Sector With Technology Grants
Oct 11, 2016, 5:00 AM
Scientists Sound Alarm on Climate but US Still Toys With Skepticism
Oct 10, 2016, 5:00 AM
IMEX America Trade Show
Oct 9, 2016, 10:00 AM
Phone Wars – Google VS Samsung Free Gifts on Purchase
Oct 6, 2016, 5:00 AM
Member of Parliament’s opposition car exploded in Tbilist capital of Georgia
Oct 5, 2016, 2:52 PM
US Government Cuts Cord On Internet Oversight
Oct 3, 2016, 10:34 AM
Are farm children less likely to have allergies and asthma in adulthood?
Sep 30, 2016, 5:00 AM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information