Bleak Outlook For Blackberry As Work Force Braces For Mass Layoffs |

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Bleak Outlook For Blackberry As Work Force Braces For Mass Layoffs

20 September 2013

Blackberry has been struggling for some time to thrive in the competitive smartphone industry, but it seems the company is in worse shape than previously believed. In a few brief hours following a new smartphone announcement, the Z30, The Wall Street Journal reported that Blackberry may be forced to layoff as much as 40% of its workforce by the end of 2013. Such a major layoff will likely impact thousands of the company’s employees across every department.

The announcement of a new 5-inch Blackberry smartphone and new operating system received little media attention on Wednesday, casting Blackberry into the shadow of Apple announcements and news of Blackberry’s upcoming layoff. Consumers and reports fear that the poorly timed phone announcement, combined with the obvious devastation over the news of the layoffs, could be the final nail in Blackberry’s coffin.

A company representative responded to early reports of the impending layoff and told The Wall Street Journal, “Organizational moves will continue to occur to ensure we have the right people in the right roles to drive new opportunities in mobile computing.”

The layoffs are likely as much as move to save costs in hard times as they are an attempt to restructure the company to be as appealing as possible to potential buyers. Last month, the company publicized its decision to “explore strategic alternatives” which might mean anything from new partnerships to sale of the company.

Blackberry has resorted to layoffs in the past, but the upcoming mass layoff is anticipated to be the worst to date. Quarterly earnings will be released next week to provide investors with official details on Blackberry’s current market position.

Although staff across all of Blackberry’s locations and departments will be affected, employees at Blackberry’s Waterloo, Ontario headquarters are expected to receive the hardest hit when the layoffs take place.

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