BlackBerry Ends Terrible Week With Mass Layoff

On the same day that the latest iPhone had customers lining up for hours, BlackBerry made some brutal news.

Sen. Barbara Mikulski, D-Md., holds up her BlackBerry as she responds to a tweet she just received during a hearing.
National Journal
Matt Berman
Add to Briefcase
See more stories about...
Matt Berman
Sept. 20, 2013, 11:55 a.m.

Black­Berry de­b­uted its Z30 phone on Wed­nes­day as its new flag­ship smart­phone. There’s noth­ing wrong with you if you missed this. Be­cause with all of the ex­cite­ment over the new iPhone that was re­leased Fri­day (you can get it in gold!), it was hard to think about the tech­no­lo­gic­al di­no­saur that is Black­Berry. 

And that Z30 may have a very short life span. 

On Fri­day, Black­Berry briefly hal­ted its shares be­fore an­noun­cing its dis­astrous second-quarter rev­en­ue res­ults. The com­pany’s $1.6 bil­lion quarterly haul came in well short of in­vestors’ ex­pect­a­tions of around $3 bil­lion, ac­cord­ing to CN­BC. Over the quarter, the com­pany shipped just 3.7 mil­lion phones while rack­ing up a net op­er­at­ing loss of $995 mil­lion in the second quarter.

On top of that, con­firm­ing re­ports from The Wall Street Journ­al, Black­Berry an­nounced a massive lay­off of 4,500 em­ploy­ees out of a total of around 12,700. That’s around 35 per­cent of Black­Berry’s total staff. Black­Berry isn’t even done with the worst of Fri­day yet, as shares are down over 20 per­cent as of about 4 p.m.

At the end of Au­gust, Black­Berry dir­ect­or Bert Nord­berg told WSJ that he thought the com­pany could sur­vive as a “niche com­pany,” and that there wasn’t much sense in “bat­tling” Apple or Google. With a newly an­nounced plan to re­duce op­er­at­ing ex­pendit­ures by 50 per­cent by 2015, go­ing small doesn’t even seem like much of a choice.

Black­Berry, once the un­ques­tioned king of the Wash­ing­ton, D.C., smart­phone mar­ket, has even had trouble sur­viv­ing in Con­gress over the last year. But that doesn’t mean it’ll be too easy for mem­bers of Con­gress and Cap­it­ol Hill staffers to just trade in their Black­Berry phones for gold iPhones. Be­cause there’s already a long wait list.

What We're Following See More »
STARTS LEGAL FUND FOR WH STAFF
Trump to Begin Covering His Own Legal Bills
14 hours ago
THE DETAILS
DISCUSSED THE MATTER FOR A NEW BOOK
Steele Says Follow the Money
15 hours ago
STAFF PICKS

"Christopher Steele, the former British intelligence officer who wrote the explosive dossier alleging ties between Donald Trump and Russia," says in a new book by The Guardian's Luke Harding that "Trump's land and hotel deals with Russians needed to be examined. ... Steele did not go into further detail, Harding said, but seemed to be referring to a 2008 home sale to the Russian oligarch Dmitry Rybolovlev. Richard Dearlove, who headed the UK foreign-intelligence unit MI6 between 1999 and 2004, said in April that Trump borrowed money from Russia for his business during the 2008 financial crisis."

Source:
BRITISH PUBLICIST CONNECTED TO TRUMP TOWER MEETING
Goldstone Ready to Meet with Mueller’s Team
16 hours ago
THE LATEST

"The British publicist who helped set up the fateful meeting between Donald Trump Jr. and a group of Russians at Trump Tower in June 2016 is ready to meet with Special Prosecutor Robert Mueller's office, according to several people familiar with the matter. Rob Goldstone has been living in Bangkok, Thailand, but has been communicating with Mueller's office through his lawyer, said a source close to Goldstone."

Source:
SPEAKING ON RUSSIAN STATE TV
Kislyak Says Trump Campaign Contacts Too Numerous to List
16 hours ago
THE LATEST

"Russian Ambassador Sergey Kislyak said on Wednesday that it would take him more than 20 minutes to name all of the Trump officials he's met with or spoken to on the phone. ... Kislyak made the remarks in a sprawling interview with Russia-1, a popular state-owned Russian television channel."

Source:
“BLOWING A SURE THING”
Sabato Moves Alabama to “Lean Democrat”
1 days ago
WHY WE CARE
×
×

Welcome to National Journal!

You are currently accessing National Journal from IP access. Please login to access this feature. If you have any questions, please contact your Dedicated Advisor.

Login