The story of Blackberry is sounding more and more like that of Nortel. Once a shining star in the tech world, now a has been company that can’t seem to do anything right.
Last week we learned that Blackberry (formely Research In Motion) will be laying off 40% of its workforce or 4,500 employees (worldwide). This terrible announcement was done at the same time as it notified the market it would have a GAAP net loss of $950 million - $1 billion in Q2. Cell phone sales are down 50% from last quarter to 3.7 million devices.
Blackberry is cutting its workforce in an attempt to severely reduce costs. It is important to remember that the company has almost no debt and is sitting on almost $3billion of cash. The most prevalent rumor right now is that the company will likely be broken up and sold in part.
Blackberry’s official Q2 earnings will be announced this week on Friday September 27 2013.