BlackBerry announces plans to cut 4,500 jobs, refocus on enterprise and prosumer marketsAlex Wagner - Deputy Managing Editor, News Desk
BlackBerry made several big announcements this week, including the introduction of its 5-inch Z30 smartphone and the impending arrival of BBM for Android and iPhone, and today that company had another major piece of news to share. However, this announcement falls squarely on the opposite end of the excitement spectrum.
BlackBerry revealed Friday afternoon that it will soon cut 4,500 jobs from its workforce and that it will report a net operating loss of around $950 million to $995 million on its next quarterly report. The moves are part of a restructuring effort that's intended to reduce its operating expenses by around 50 by the end of the first quarter of fiscal 2015. BlackBerry also plans to refocus on the enterprise and prosumer markets, a decision that includes cutting its future smartphone portfolio from 6 products to 4. Of those devices, 2 will be high-end and 2 will be focused on the entry-level.
It's no secret that BlackBerry has been having a bit of a rough go lately, reporting operating losses in recent quarters and announcing that it has formed a committee to review its "strategic alternatives," which could include an outright sale of the company. We haven't yet heard of any companies that may actually go through with a purchase, but it's said that BlackBerry is hoping to be sold off by November, suggesting that it might be unsure of how much longer it can continue on its own. BlackBerry will announce its full Q2 2014 results on Sept. 27, so we should hear more details on the company's plans then.