In what is becoming a common occurrence for BlackBerry, a large amount of employees were laid off within their device business. BlackBerry has been focusing on improving in more profitable areas such as mobile management and security software.
This wave of layoffs is the second to strike the company in the past 2 months. In April, BlackBerry shut down their Sweden offices. The company was certainly not expecting so many layoffs in 2015 as they public expressed confidence in the launch of new devices and software.
"As the company moves into its next stage of the turnaround, our intention is to reallocate resources in ways that will best enable us to capitalize on growth opportunities while driving toward sustainable profitability," said in a statement by BlackBerry.
Ultimately, BlackBerry is a manufacturer that became quickly overmatched by smartphone manufacturers like Apple. What once was a prominent phone device, now gives off the impression of a company way past its prime. BlackBerry went from compromising half the smartphone market with a $1.9 billion profit to less than 1% of the smartphone market with a $5.8 billion deficit. There has been plenty of speculation that manufacturers such as Microsoft, Huawei, Lenovo, or Xiaomi could make bids to purchase the company. For now, BlackBerry is sticking to their software and services to drive sales back up.
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