FILE: Blackberry warns of big loss, sharp job cuts

Record ID: 861083

  • Title: FILE: Blackberry warns of big loss, sharp job cuts
  • Date: 21st September 2013
  • Summary: NEW YORK CITY, NEW YORK, UNITED STATES (FILE - JANUARY 30, 2013) (REUTERS) VARIOUS OF BLACKBERRY SMARTPHONES BEING HANDLED AND OPERATED MAN OPERATING BLACKBERRY HANDS ON BLACKBERRY WITH WOMAN'S VOICE EXPLAINING HOW IT WORKS
  • Embargoed: 6th October 2013 13:00
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  • Location: Usa
  • City:
  • Country: USA
  • Topics: Technology
  • Reuters ID: LVA62E2E55IRIFTLJ8X6ICQDWEHD
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  • Story Text: BlackBerry Ltd warned on Friday (September 20) it expects to report a huge quarterly operating loss next week and that it will cut more than a third of its global workforce, rekindling fears of the company's demise and sending its shares into a tailspin.
    The company, which has struggled to claw back market share from the likes of Apple Inc's iPhone and Samsung Electronics Co Ltd's Galaxy phones, said it expects to report a net operating loss of between $950 million (USD) and $995 million in the quarter ended Aug. 31, due to writedowns and other factors.
    The results will put more pressure on BlackBerry to find a buyer for either some parts of the company, or for all of it. It said last month it is weighing its options, including an outright sale, in the face of persistently lackluster sales of its new smartphones, which run on the BlackBerry 10 operating system.
    The company, which had warned that job cuts were in the offing, plans to shed 4,500 jobs. BlackBerry has already undergone a major round of job cuts over the last 12 months. It employed 12,700 people as of March, and once had close to 20,000 employees.
    The company said it plans to shave its operating costs by some 50 percent over the next nine months, as it aims to focus its attention on the enterprise market and become a more niche player.
    BlackBerry's Toronto-listed shares fell as much as 23.7 percent to C$8.25 on Friday, their lowest this year, before closing down 16 percent at C$9.08. The company's Nasdaq-listed shares ended 17 percent lower at $8.73, after falling as low as $8.01.
    The company had bet much of its future on the popularity of the Z10 touchscreen device - the first of the smartphones to be powered by its new BlackBerry 10 operating system. While the device drew favorable reviews, it has failed to gain traction among consumers since its introduction earlier this year.
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