BlackBerry to Lay Off Undisclosed Number of Employees from Device Business

by Istvan Fekete on May 25, 2015

BlackBerry has announced another wave of layoffs targeting employees in its device business, including those focused on development of software and applications, reports the Wall Street Journal. The announcement comes after the company had reportedly been on a hiring spree after the most definitive evidence that the company’s turnaround was on track was reported last August.

We’ve heard plenty of times that the Canadian smartphone manufacturer is focusing on the more profitable area of mobile management and security software to reignite growth. The announcement is in line with previous target specifications.

Also, this is the second layoff announcement in 2015 from BlackBerry: In April the company announced that it was considering closing its Sweden offices, which means about 100 employees will have to find another job. Speaking with the Wall Street Journal, a BlackBerry spokeswoman did not specify if the layoffs in Sweden had taken place, or if they were part of the latest job cuts.

BlackBerry employs about 7,000 people globally. The latest layoffs highlight once again the amount of pressure the smartphone manufacturer is under as it aims to compete with Apple and the most popular Android smartphone OEM, Samsung.

Interestingly, BlackBerry Chief Executive John Chen told employees last August that the company had finished layoffs, as it focuses on the coming launch of new devices and software, as well as “strategic acquisitions.”

Chen took over the company leadership in November 2013 when BlackBerry announced plans to lay off 40% of its staff following the disappointing North American launch of its BB10 smartphone. He quickly moved to outsource manufacturing, sell some of the company’s real estate and non-core assets, and more.

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Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

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