The global manufacturer of smartphones, BlackBerry, has announced that it is due to cut 4,500 jobs and will note an inventory writedown of up to $960 million, following disappointing sales figures for a number of recent product launches. In light of the latest spate of commercial failures, one cannot help but think BlackBerry may be in trouble.
According to Bloomberg, the company is expected to make a net loss of $995 million, for the second quarter of the fiscal year. Adding to this, sales for the quarter were half of what was expected, at around $1.6 billion.
Most of the writedown centers around the beleaguered Z10 touch screen model cell phone, according to company officials.
The company’s chief executive officer, Thorstein Heins was hoping the new BlackBerry 10 range would achieve better review scores and critical reception, thereby salvaging the company. Alas, BlackBerry’s shares have continued to slide, along with their profits.
Meanwhile, it is alleged the floundering company is soliciting the aid of accountancy firm PricewaterhouseCoopers LLP to search for viable buyers.
By: James Fenner