(MENAFN- Qatar News Agency) Struggling smartphone pioneer Blackberry announced the firing of 4,500 workers, or 40 per cent of its workforce, Friday following the disappointing debut of its Z10 smartphone.
The layoffs, which are the largest in the company's history, are aimed at reducing costs by 50 per cent as the struggling company seeks a buyer. Blackberry said it would trim the number of devices it makes to just four - two for high-end customers and two aimed at entry-level users.
The company announced it was taking a charge of up to 960 million dollars to account for the failure of the Z10 with consumers. It said it expected to post a net operating loss of 995 million dollars for its fiscal second quarter.
"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," Blackberry President Thorsten Heins was quoted by the German press agency as saying. "Going forward, we plan to refocus our offering on our end-to-end solution of hardware, software and services for enterprises and the productive, professional end user."
The cuts come as the company struggles to survive in the face of competition from Apple, Samsung and other smartphone makers who have helped beat down Blackberry's market share to just 3 per cent of the US market, from 14 per cent two years ago, according to research firm IDC. Blackberry is currently reviewing strategic alternatives, including a sale of the company after its two new flagship phones failed to catch on.
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