Blackberry Stares Down $950 Million Loss, Forecasts 4,500 Job Cuts
Now, BlackBerry is issuing preliminary financial results for its fiscal Q2 2014 -- and it's not because it just can't wait to share positive news. The company is expecting a net operating loss of approximately $950 million to $995 million. Yes, that's nearly a billion dollars in the wrong direction. The reason? According to BlackBerry: "an increasingly competitive business environment impacting BlackBerry smartphone volumes, as well as a pre-tax restructuring charge of $72 million."
That said, it's expecting total revenues of $1.6 billion on sales of 3.7 million phones. To put that in perspective, Apple is on track to sell more phones than that in the opening weekend of the iPhone 5s being on sale. Ouch. Going forward, BlackBerry is going to have to make some awful decisions that'll impact a ton of people. It's going to "refocus on the enterprise and prosumer markets," effectively waving the white flag in the consumer realm and enabling Google and Apple to continue their dominace. Plus, around 4,500 employees will be laid off in the coming months as it cuts costs to deal with sinking demand.
The company's future will be one full of challenges. It'll scale back its roadmap from 6 devices to just 4, with two of those hitting the high-end and the other two tackling the low-end. Plus, there has been a committee put in place to evaluate "strategic alternatives" to going forward with its usual business. In other words, BlackBerry is looking for itself a buyer. Believe it or not, BlackBerry as we know it may be a goner by 2014. Talk about a hasty fall from the top.