BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB), the struggling smartphone maker, is now planning to trim resources of its much-hyped BlackBerry 10 line of products. BB 10, which was considered as a lifeline for the turnaround of BlackBerry, is now in a dire need of a turnaround itself. The Canadian firm now plans to lower its workforce in Ottawa.
Massive downsizing
Currently, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is following a massive downsizing effort, which will continue throughout May. As a part of the downsizing, the company announced the closing of its Ottawa product development center, which employs researchers working on BlackBerry 10 hardware. On Monday, apart from announcing the shuttering of the Ottawa center, the Canadian firm also announced 140 job cuts at its Waterloo facilities. Around 90 employees have been eliminated in Ottawa.
BlackBerry plans to lay off around 40% of its global workforce by May, leaving the Canadian firm with less than 7,600 employees. BlackBerry, at its peak, has been a home to 13,000 employees.
In a statement to Ottawa Citizen, the BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) said that the measures are aimed at restoring profitability, and for this company continues to utilize its resources to meet the “mandatory operational targets.” The job cuts included employees from product development and wireless technology teams.
“We recognize our local employees’ hard work on behalf of our company and the difficulty of this news. And we will do everything in our power to treat our employees with compassion, while offering support during this time of transition,” the statement said.
BlackBerry failing to woo customers
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) will come out with its annual financial statements on March 28. The company has taken numerous measures, in recent months, to lower spending and save on cash. The Canadian firm has already announced to sell its 2.2 million square real estate holdings in Canada, including major holdings in Waterloo. A few weeks back, BlackBerry announced the sale of its U.S. headquarters in Irving, Texas.
Despite all efforts, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) has been struggling to attract customers for its devices. The Canadian firm, which now has less than a 3% market share in the U.S., is focusing more on its software offerings now.
