BlackBerry Ltd (BBRY) Reports $995M Net Loss For Q2, Firing 4,500 People
BlackBerry Ltd (NASDAQ:BBRY) has reported today that they are cutting 4,500 jobs. The company shipped 3.7 million smartphones last quarter, which is very low considering how much investment went into BlackBerry 10 and their new smartphones. The company pre-announced their earnings and said that they hit a $995 million net loss for Q2 this year.
BlackBerry is going to cut operating expenditures by 50% by 2015. As of today, the company’s stock is trading at $8.73 per share and it dropped $1.80 today (-17.06%).
“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,” stated BlackBerry Ltd (NASDAQ:BBRY) CEO Thorsten Heins.
BlackBerry is planning to focus on enterprise instead of normal consumers going forward. The company is also going to trim their device line from six models to four models. BlackBerry also confirmed that they have hired a special committee to look at options for the company, such as a sale.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry