BlackBerry is Running Out of Options

BlackBerry is running out of options. The Canadian smart-phone company’s shares dropped by 5% on Wednesday after a WSJ report stated that a 40% reduction in Blackberry’s workforce is imminent.

Lisette Kwong – Spokesperson for BlackBerry - explained that the company “is in the second phase of a transformation plan” and “organizational moves will continue to ensure we have the right people in the right roles”.

Employees of BlackBerry can expect to find out whether their jobs are secure or not at the end of this year, when layoffs are said to take place.

The layoffs are said to be part and parcel of a major restructuring strategy by Blackberry who is desperately trying to regain the vast market share it lost in the space of just one year.

Once the most popular smart-phone on the market, BlackBerry has suffered against its competitors Apple and Samsung.

Despite the release of the Blackberry 10 operating system, sales have remained disappointing. So it is no wonder that the smart-phone giant is struggling to cope in such a competitive and fast moving market.

Last month the company explained how they will have to look into alternatives to preserve its future. Among these alternatives might be to go private according to CNN.

Employees of the Canadian company need to prepare for the worst. Those who are expecting to lose their jobs will do so before Christmas, and those who keep their jobs have no guarantee of a secure future anyway.

What do you think about the company situation? Do you think a sale will save the organization?

Full story from Julianne Pepitone – New York (CNNMoney)