Monday, 23 September 2013 05:42
BlackBerry started off last week by announcing their new Z30 5" device and I said that I didn't think this was the device that BlackBerry "needed". It appears that is didn't inspire any confidence at all and with all the gloom of the last few months, they expect their Q2 net operating loss to be over $950 Million. Ouch. In turn, they will be laying off at least 4,500 jobs in order to try and balance their budget. Anytime you start making major workforce slashes like this, you're dying and the end is inevitable.
Today, the company confirmed the latter rumor, announcing that it will lay off around 4,500 employees as a part of a plan to reduce its operating expenditures by half over the next year. The plan's necessitated by an expected Q2 2014 net operating loss of almost one billion (955-995 million) dollars, driven primarily by the lackluster sale of its BB10 phones -- the company will take a pre-tax charge of $930-960 million which can be attributed mostly to the failure of the Z10 to sell.
On a positive note, BBM for Android and iPhone was set to roll out and this caused some excitement. Unfortunately the demand on the few BlackBerry Messenger servers that are still running was so high, that the service crashed a lot and it was down. BlackBerry has since halted the rollout. This is just more gasoline on the fire at the BlackBerry HQ and is signaling the end in my opinion.
Prior to launching BBM for Android, an unreleased version of the BBM for Android app was posted online. The interest and enthusiasm we have seen already – more than 1.1 million active users in the first 8 hours without even launching the official Android app – is incredible. Consequently, this unreleased version caused issues, which we have attempted to address throughout the day.