BlackBerry Laying Off 4,500 Employees

BlackBerry Laying Off 4,500 Employees

Today, BlackBerryannounced preliminary results for the quarter that ended August 31, and that it anticipated it would have a net loss of almost $1 billion. In addition to the announced loss, it also stated it would have layoffs of approximately 4,500 employees, or approximately 40% of its workforce.

The company noted that, as a result of these and other restructuring initiatives, it hopes to reduce its operating expenses by 50% by the end of the first quarter of the 2015 fiscal year.

The company expects second quarter revenue of $1.6 billion, versus revenue of $3.1 billion last quarter, and $2.3 billion for the same period last year.

President and CEO of BlackBerry Thorsten Heins stated in the release:

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.

It also stated the Special Committee of its Board is continuing to "evaluate strategic alternatives."

Trading of BlackBerry shares were halted earlier today on both the Nasdaq and the Toronto Stock Exchanges, and the stock fell 17% on the news.

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