BlackBerry announces huge expected losses

Just days after it launched the flagship BlackBerry Z30 (pictured here), BlackBerry has made an altogether more sombre announcement, concerning job cuts and huge potential losses.

BlackBerry has announced that it will lose 4,500 employees over the next year, as it attempts to reduce operating expenditure by half. That's due to  an expected Q2 2014 net operating loss of almost one billion dollars ($955 - $995 million). The loss is because of disappointing BB10 sales, especially the failure of the BlackBerry Z10 to shift in the kind of numbers expected (or hoped for) at BlackBerry HQ.

The Z10 will now be priced 'to make it available to a broader, entry-level audience', which indicates a hefty markdown no doubt, leaving the Z30 as sole flagship hardware. In future, the company will reduce its device portfolio from six devices to four, with two high end and two entry level phones in the range. It is also said to be aiming all future hardware at 'enterprise and prosumers', which means it is opting out of fighting within the mainstream market for the forseeable future.

Share prices dropped on the news, as you might have guessed. The statement is also likely to make it even tougher to find the buyer that BlackBerry desperately needs. Although there are rumours of a possibly buyout by Mike Lazaridis, the BlackBerry co-founder and former chief executive. That's unlikely in the short term, which is likely to be a particularly rocky period for the company.

Source: Engadget

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