- BlackBerry stock struggled in Tuesday trading after announcing its plan to streamline costs, including cutting jobs and targeting an additional increase of US$100 million in profit
- BlackBerry’s team stated it had cut roughly 200 jobs last quarter and expects to cut more jobs in its cybersecurity business.
- This is expected to generate annualized savings of around US$27 million.
- BlackBerry stock closed trading at C$3.68 per share
BlackBerry (TSX:BB) stock struggled in Tuesday trading after announcing its plan to streamline costs, including cutting jobs.
As part of its ongoing process to separate two of its business divisions, the Waterloo, Ontario-based cybersecurity firm stated it is targeting an additional increase of US$100 million in its annual profit.
In a news release, BlackBerry’s team stated it had cut roughly 200 jobs last quarter and expects to cut more jobs in its cybersecurity business. This is expected to generate annualized savings of around US$27 million. Another avenue Blackberry is taking to save money is its departure from six of its 36 global office locations.
BlackBerry reiterated its total revenue outlook of US$150 million to US$159 million and for Cybersecurity ARR to stabilize sequentially in the current quarter.
The company expects to return to positive cash flow, noting that in this current fiscal year, operating cash usage in Q2 was US$56 million and improved to US$31 million in Q3 2023. However, Blackberry also reported a loss of US$21 million in its Q3.
BlackBerry Ltd. provides intelligent security software and services to enterprises and governments around the world and secures more than 500 million endpoints including more than 235 million vehicles.
BlackBerry stock closed trading at C$3.68 per share and is down more than 34 per cent since this time last year.
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