Will BlackBerry survive?

BBHitam — Sun, 22 Sep 2013 21:17:43 +0800

BlackBerry would cut its staff by 40% and stop selling devices to consumers after its attempt to regain its footing in the smartphone market failed.

The failure will fall heavily on BlackBerry's workforce, which stood at 12,700 in March. The company said it would eliminate 4,500 of those jobs as part of an effort to cut fully 50% of its operating costs. The Wall Street Journal reported Wednesday that BlackBerry was preparing to lay off 40% of its staff.

The question is no longer whether BlackBerry can compete in the smartphone market but whether it can survive as an independent company. Other once powerful phone makers like Motorola Mobility and the devices arm of Nokia Corp. shriveled rapidly and were forced to find shelter with acquirers Google Inc. and Microsoft Corp.

Messrs. Balsillie and Lazaridis stepped down as co-CEOs and co-chairman in January 2012, handing the reins to Mr. Heins, who focused on streamlining operations and laid off a third of the company's staff. Messrs.

But a few months after taking over, Mr. Heins admitted the problems at the company were worse than he had expected. The line of phones meant to save the company was late. When they finally launched this spring, they received a tepid response.

BlackBerry fans loyal to the device's hard keyboard wondered why the company released a touch screen phone first. Poor sales of that phone—called the Z10—were responsible for the $930 million to $960 million charge for inventory announced Friday.

The other phone—the keyboard equipped Q10—is also having trouble finding an audience, carriers and retailers have said.

BlackBerry said Friday it would post a loss of $950 million to $995 million for the three months that ended Aug. 31. The company said its revenue for the period would fall about 45% to $1.6 billion from a year earlier.

Lowyat.NET: Latest topics by BBHitam

Will BlackBerry survive?