It was announced yesterday that Canadian smart phone giant Blackberry has made the decision to make 4,500 members of its staff redundant.
BlackBerry says job cuts will help it halve its operating costs by June 1, 2014.
It expects to post a loss of US$950 million to $995 million when it reports its second-quarter earnings next Friday.
There were reports earlier this week that the struggling cellphone company was ready to slash 40 per cent of its workforce by the end of the year. The announced layoffs amount to roughly that percentage of BlackBerry’s staff.
“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,” CEO Thorsten Heins said in a press release.
Reuters reporter David Ljunggren tweeted Friday afternoon saying Industry Minister James Moore was concerned by news of the job losses.
Blackberry has been struggling for sometime now and has failed to keep up with rivals Apple (iPhone) and Samsung.
The debts of their desperation became clear earlier this year when BlackBerry CEO Thorsten Heins appointed superstar Alicia Keys as the company’s new ‘Global Creative Director’, hoping that her appointment would help to “inspire the future” of the company.
Alicia obviously failed to achieve this because right now the future looks bleak.
Who knows what was going on in Heins’ mind when he came up with the ridiculous idea to give her such an important role within the struggling company.
Not long after Alicia’s new appointment was officially announced during a press conference, Alicia then tweeted the news to her millions of Twitter followers using her iPhone. The singer later claimed her account had been “hacked”.
Honestly you couldn’t make this up.
I feel it for the thousands of staff members who stand to lose their jobs.