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40% BlackBerry Employees To Lose Job For Nearly $1 Billion Loss

While every companies dream to do better business in future, at then BlackBerry has announced that it expects to lose nearly $1 billion in the second-quarter due to disappointing sales of its new phones and therefore, it has no way but to dismiss 40% of its employees!


BlackBerry

For long time, BlackBerry had been suffering terribly because the sales ratio of its phones was way far than expectations. Buy still the company was trying hard to cover up its losses. BlackBerry hoped that its BlackBerry Z10 smartphones would help the company to cover up its major losses. But it didn’t go according to the plan.

BlackBerry has said that it only shipped 3.7 million smartphones last quarter, which is dismally low. Although analysts predicted that that BlackBerry would earn a profit of around $3 billion in Q2, but the company said that it has earned $1.6 billion only, which is about half of analysts’ predicted amount.

BlackBerry also has said that it has made a net operating loss of $995 million in Q2 of this year. Therefore, now the company wants to slash operating costs in half by the first quarter of 2015. So it will sack 40% meaning 4500 of its employees.

The company now plans to shift its focus toward business and the “prosumer” market, a concession that its BlackBerry 10 smartphones can’t compete in the brutal market for consumer smartphones. Besides, BlackBerry is cutting its smartphone lineup from six models to four models.

Source: LA Times

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