On a day when struggling smartphone maker
BlackBerry (
TSX: T.BB,
Stock Forum) unveiled its new Z30 smartphone, the company was sideswiped by a media report, which said the smartphone maker could lay off as many as 5,000 employees in the coming months.
The Wall Street Journal says executives are preparing to reduce the company's staff by as much as 40 per cent before the end of the year, citing people familiar with the matter. This would be in line with a plan to return the company to profitability.
BlackBerry declined to directly address the reported number of potential layoffs.
``Organizational moves will continue to occur to ensure we have the right people in the right roles to drive new opportunities in mobile computing,'' spokeswoman Rebecca Freiburger said in an emailed statement.
Blackberry shares eased 2.2% to $10.64 on Wednesday, leaving the smartphone company with a market cap of $5.6 billion, based on 524.2 million shares outstanding. The 52-week range is $18.49 and $6.10
BlackBerry chief executive Thorsten Heins is moving ahead with a three-stage plan designed to make the struggling Waterloo, Ont.-based company profitable again.
In the most recent quarter,
BlackBerry posted an $84 million loss as it faced costs from the launch of its new devices and underwhelming shipments to stores.
The latest financial results will be released on Sept. 27.
BlackBerry had 12,700 employees worldwide at the start of March, though the company has been trimming its operations over the past few months. In July, the company gave layoff notices to 250 workers at its product testing facility in Waterloo, and followed up with cuts of about 60 employees, mostly in its sales department, earlier this month.
Throughout the summer it also saw the departure of several mid-level executives who were responsible for the launch of the new
BlackBerry operating system and the PlayBook.
Those reductions came on top of the 5,000 jobs the company has cut since it launched a restructuring effort last year.
On Wednesday,
BlackBerry unveiled its latest device, a larger smartphone called the
BlackBerry Z30, which serves as a midpoint between a phone and tablet. The Z30 comes with a five-inch screen, improved battery life and faster processor than the models released earlier this year.
BlackBerry says it's designed for people looking for a smartphone geared toward communications, messaging and productivity.
The company's full Documents To Go suite comes preinstalled and the phone runs on the latest version of the BlackBerry 10 operating system.
The Z30 is set to initially launch next week in the U.K. and Middle East, along with the rest of the world before the holiday season.
The launch comes as the Canadian smartphone maker continues to ponder a possible sale of the company amid tough competition from fellow smartphone makers like Apple Inc. and Samsung.