Blackberry to Layoff 4,500 Due Massive Losses

Blackberry announced Friday, September 20, 2013, afternoon about the layoff of 4500 jobs due to massive losses incurred from its smartphone. The company’s decline is due to its main competitors Android Phones and iOS phone. There were reported $1 Billion loses for the company. 4500 translates to 37.5% trim down in their current work force.

Report further says that Blackberry now less than 3% of the U.S. market, despite releasing two new phones this year. The company introduced a third new phone, the Z30, earlier this week.

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It is believed that Z10 launch has been a disaster for BlackBerry.

Report also says that BlackBerry will now focus in the Enterprise Market and will stop competing in the consumer smartphones. It seems that BlackBerry is gaining at the Enterprise Market.  BlackBerry Enterprise Service servers had an increase from 19,000 to 25,000 in three months. BlackBerry needs to have strategic alternatives in order to stay in the business. In the middle east BlackBerry has been noted in serving business men, long before the introduction of Android phones. It is clear that with the number of application available from Android and IOS most BlackBerry user changes their phones.

Source 1 , Source 2

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