BlackBerry Loses A Billion And Confirms Job Cuts [UPDATED]

The end cannot be far away for BlackBerry.

The company this afternoon halted trading of it’s stock and announced the slashing of 4,500 jobs and that it will report a net operating loss of nearly $1 billion in fiscal Q2. The bad news doesn’t end there:

  • BlackBerry had $1.6 billion in sales on the quarter. The street was expecting $3.06 billion.
  • BlackBerry sold around 3.7 million smartphones. It sold 6.8 million smartphones last quarter.
  • BlackBerry is taking a pretax charge of at least $930 million on unsold inventory,
  • BlackBerry is cutting its operating expenditures in half by the first quarter of 2015.
  • BlackBerry has $2.6 billion in cash, down from $3 billion last quarter.

Given these events, I cannot see how much longer this company will survive.

UPDATE: Investors typed the word “sell” into their iPhones and Android phones and the stock took a 17% hit. It should also be noted that BlackBerry is going to focus on business and prosumer markets from now on. Good luck with that.

Leave a Reply

Discover more from The IT Nerd

Subscribe now to keep reading and get access to the full archive.

Continue reading