Blames the Z10 which it launched too late for Xmas 2012
In a terse statement put out yesterday [September 20th 2013], Canadian smartphone supplier announced that it intends to take drastic action to stem losses including job cuts. It attributed these losses mainly to the poor performance of the Z10 model. Here at GoMo Towers, we were staggered when BlackBerry announced the Z10 just weeks after Xmas. How could it have failed to notice that major handset sales always take part in Q4? It surely must have been capable of rushing the Z10 out? Also, how does it expect to do well when it made such a small splash of the Z30 – its latest model designed to supercede the Z10?
The fact that current CEO, Thorsten Heins will receive around £36 million if he succeeds in selling BlackBerry won’t go down well with fired employees.
In the official preliminary second fiscal quarter sales report here, BlackBerry states that, “it is targeting an approximate 50 per cent reduction in operating expenditures by the end of the first quarter of Fiscal 2015.”
As part of this, BlackBerry will implement a workforce reduction of approximately 4,500 positions or approximately 40 per cent of the company’s global workforce -resulting in a total workforce of approximately 7,000 full-time global employees.
Thorsten Heins, President and CEO of BlackBerry commented, “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.”
“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.”
On Friday [September 20th 2013], BlackBerry’s stock (NASDAQ: BBRY) fell 17.063 per cent to end at $8.73.