Brutal Day for Blackberry: Cuts 40% of Workforce
Company reports $1B loss
By Newser Editors and Wire Services
Posted Sep 20, 2013 3:33 PM CDT
File photo of a BlackBerry Q10.   (AP Photo/The Canadian Press, Geoff Robins)

(Newser) – Apple may be celebrating another successful iPhone rollout today, but it's a far different story for Blackberry. The company said it will lay off 4,500 employees, or 40% of its global workforce, as it reports a nearly $1 billion second-quarter loss a week earlier than expected. The stock dropped 23% to $8.11 on the news. The Canadian company expects to post a staggering loss of $950 million to $995 million for the quarter, including a massive write-down of the value of its inventory because of increasing competition. See TheStreet for more details.

Copyright 2016 Newser, LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

More From Newser
My Take on This Story
To report an error on this story,
notify our editors.
Brutal Day for Blackberry: Cuts 40% of Workforce is...
11%
9%
68%
5%
4%
3%
Show results without voting
You Might Like
Comments
Showing 3 of 16 comments
MDD
Sep 21, 2013 7:08 PM CDT
Real quotes from the Dead and the walking Dead..... In December 2006, Palm CEO Ed Colligan summarily dismissed the idea that a traditional personal computing company could compete in the smartphone business. “We’ve learned and struggled for a few years here figuring out how to make a decent phone,” he said. “PC guys (Apple) are not going to just figure this out. They’re not going to just walk in.” In January 2007, Microsoft CEO Steve Ballmer laughed off the prospect of an expensive smartphone without a keyboard having a chance in the marketplace as follows: “Five hundred dollars? Fully subsidized? With a plan? I said that’s the most expensive phone in the world and it doesn’t appeal to business customers because it doesn’t have a keyboard, which makes it not a very good e-mail machine.” In March 2007, computing industry pundit John C. Dvorak argued that “Apple should pull the plug on the iPhone” since “There is no likelihood that Apple can be successful in a business this competitive.” Dvorak believed the mobile handset business was already locked up by the era’s major players. “This is not an emerging business. In fact it’s gone so far that it’s in the process of consolidation with probably two players dominating everything, Nokia Corp. and Motorola Inc.”
DougMasters
Sep 21, 2013 11:36 AM CDT
I like blueberries
chulupadog
Sep 21, 2013 10:47 AM CDT
Those crazy Canadians. Who is going to pay for their national free healthcare?