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The bad news keeps streaming in for BlackBerry

The 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.

Source: BlackBerry



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BB is dead phone
By KOOLTIME on 9/21/2013 6:52:42 PM , Rating: 2
good they keep trying to hold on to a dead phone, they should have sold is years ago when they had offers on the table, greedy fools, said no we are better, now look they are greedy fools with an outdated phone nobody wants, and no where to turn but to bankruptcy and be the end of this over priced junk of a phone.




RE: BB is dead phone
By Makaveli on 9/22/2013 7:38:50 PM , Rating: 2
when you actually use a BB10 device then someone can take your rant seriously.


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