BlackBerry lays off another 300 workers
Oct 30, 2013 / 7:46 am
Another round of layoffs at BlackBerry's headquarters in Waterloo, Ont., will trim its staff by 300 employees, as part of a broader cost-cutting plan.
The smartphone maker said Tuesday the latest job cuts are included in an announcement from September when the company pledged to reduce its workforce by 40 per cent or about 4,500 people.
"We are in a period of transition and we must focus on enhancing our financial results to be in a better position to compete in this current mobile environment," company spokeswoman Rebecca Freiburger said in an email.
"We recognize our local employees' hard work on behalf of our company and the difficulty of this news."
BlackBerry (TSX:BB) has said it expects to face costs of at least US$400 million before the end of May 2014. The expenses are tied to the severance payments for the layoffs, as well as reworking its smartphone lineup and other changes to its manufacturing, sales and marketing operations.
In September, BlackBerry received a conditional takeover offer from Fairfax Financial (TSX:FFH), its largest shareholder, worth $9 per share. The conditional offer values the company at $4.7 billion.
Other interested buyers are also circling the company, according to reports from various media outlets. The tech names run the gamut from Google, Cisco and SAP, to Microsoft and Cisco.
Meanwhile, BlackBerry is also experiencing a resurgence in the popularity of its BlackBerry Messenger application, commonly called BBM.
The company said about 20 million users have downloaded the free app since it launched for Apple's iPhone and devices using the Android operating system last week. Within the first 24 hours of its release, the app had been downloaded 10 million times, the company said.
BlackBerry wants to turn BBM into a revenue generator for the company through advertising partnerships.
Shares of BlackBerry closed ahead 22 cents at $8.77 on the Toronto Stock Exchange.
Corporate meetings with Facebook
The Wall Street Journal is reporting that BlackBerry Ltd. executives went to California last week to gauge Facebook Inc.'s interest in making a bid for the struggling smartphone company.
The newspaper said BlackBerry (TSX:BB) and Facebook (Nasdaq:FB) declined to comment on the report, which the Journal says was based on unidentified sources familiar with the matter.
The story -- which provided no details about what happened as a result of the initiative -- speculates BlackBerry or its technology could be used to cater to Facebook's mobile users.
BlackBerry is publicly supporting a conditional takeover offer from Toronto-based Fairfax Financial Holdings Inc. (TSX:FFH), it's largest shareholder, but both sides have room to make changes.
There's speculation that Fairfax may amend aspects of its proposal or another potential buyer for BlackBerry could emerge.
Read more Business News
|QHR Technologies Inc||1.28||+0.09|
|Anavex Life Sciences||0.38||0.00|
|Copper Mountain Mining||1.54||-0.01|
This column is the last of three, for how to prove your personal injury claim. It is the piece de resistance of the trilogy, the Chuck Norris piece – the final say! As mentioned in the first two...
The bank manager just phoned and asked for full and immediate repayment of the line of credit because the latest, (and they were late!), financial statements showed continuing losses and falling sales...
Recently I recorded a video series for my keynote speaking business. It was called from Faith to Future. In one of the episodes, I talked about the concept of using hard work to get out of a difficul...
- US consumer spending up 0.3 per cent in October but wages and salaries post weak gain
- Healthy hiring in November would mark fourth straight month of solid job growth
- Bruce Lee's iconic yellow jumpsuit fetches $100,000 at Hong Kong auction
- Spotify to allow users to create playlists on phones and tablets and listen to them for free
- US lurching from 'crisis to crisis,' politics influenced by money: Gary Doer
- Governments offers help to develop seal products in backing Atlantic industry
- Precision Drilling shares plummet as Alberta fund manager sells stake
- Most actively traded companies on the TSX, TSX Venture Exchange markets
- CIBC logs $836M profit in Q4, cautiously optimistic about next year
- Auto insurers urge holiday season refresher as young drivers return home
- Canadian Press NewsAlert: Canada creates 21,600 jobs, Nov. jobless rate 6.9%
- New CEO will help prepare Royal Bank for future, as divisions feel the pressure