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BlackBerry planning more mass layoffs, fires head of US sales

updated 07:21 am EDT, Wed July 10, 2013

Poor BB10 sales, operating loss forcing more changes at BlackBerry

BlackBerry is planning to lay off more workers and regroup financially after an underwhelming quarter post-BlackBerry 10 device launch, according to comments made in the phone manufacturer's annual shareholder meeting. Aside from a large number of employees in the future, the company has already fired the vice president for sales in the United States Richard Piasentin.

"We obviously did not deliver what many analysts and investors expected in the short term," CEO Thorsten Heins said of BlackBerry 10 device sales. The Wall Street Journal reports he continued "We're driving night and day to deliver improvements," as part of a batch of remarks prepared ahead of the meeting.

In its most recent results, the first full quarter since the launch of BlackBerry 10 phones, it was revealed that only 2.7 million BB10 devices shipped in the period, less than half of the 6.8 million shipped by the company in total. The company also saw the previous operating profit of $94 million on $2.7 billion in revenues turn into a loss of $84 million on revenues of $3.1 billion. Heins believed that the launch of the Z10 wasn't a "disaster," a viewpoint expressed by a shareholder, and blamed US carriers and their "opportunistic thinking" in promoting only popular devices.

While the prospect of letting go of even more employees is not good for the company, considering it has already let go of 5,000 staff in the last fiscal year alone, it is not the only course of action it is looking at taking. When questioned about possibly breaking up the company and selling arms off, Heins dismissed the idea stating "Before you go into any strategic options, I think you have to create value. Currently, I cannot distract management from what I expect them to do." He admitted that he was "100-percent open to partnerships and alliances," though stopped short of giving any examples.




by MacNN Staff

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