Tomahawk, WI 9/19/2013 (BasicsMedia) – Few designers, marketers and manufacturers of wireless solutions which are geared towards the satisfaction of the mobile communications industry globally, have been as successful as BlackBerry Ltd (NASDAQ:BBRY). This is a company which provides integrated solutions for its hardware, services and software products. Several third party software developers have benefited a great deal from the solutions brought into the market by BBRY. However, the company recently decided to cut 40% of its workforce. Why is it taking such a measure?

 BBRY Confirms that it Will Reduce its Workforce

 It has been less than a week since BBRY announced that it was planning to reduce its workforce by close to 40%. The initial reports which BBRY denied had indicated that the company was planning to reduce its workforce by half. The current announcement does not offer much hope, but it shows that the difference between the two is 40% and 50%. Whichever way this is looked at, what it shows is that the company is making a huge decision which would either benefit or lead to great losses in a very competitive industry which BBRY has been a dominant player of.

The decision to reduce its workforce by around 40% is one which BBRY plans to implement by the end of the year. If all goes well, by the start of 2014, only 60% of the company’s current employees will still be working for it. The timing of this announcement is quite strange. There have been lots of reports indicating that BBRY is facing a very uncertain future. If the decision to cut workforce by this figure is based on the uncertain future which BBRY faces, it is understandable, but inexcusable. Would there have been another way to handle this problem?

 All BBRY Departments to be Affected

 No single department will be left unaffected by BBRY’s decision to fire 40% of its workers. Each department will lose some of its workers. At the end of the exercise, the company would have lost thousands of workers. The only thing worth mentioning is that this will be done in phases so that the company is not brought on its knees. BBRY revealed in March 2013 that it has 12,700 employees in its roster. This reduced to 11,000 by June 2013, and the company has continued to carry out job cuts ever since and this is expected to continue until the end of year.

 BBRY About to be Sold

Currently, there are reports circulating indicating that the company is looking at selling itself. This is based on reports indicating that it is struggling to stay in business. Alternatively, the company may have to think of being sold in pieces and over a period of time as opposed to a one-time sale. Consequently, it appears that the company’s board is in agreement with this decision, and expects the process to be completed by the end of November 2013. There is no doubt that by the time we get to 2014, BBRY would be a completely different entity.

BBRY shares continue to fall based on the news indicating that it is struggling to remain in business. It would appear as if the writing is on the wall regarding its future, and there isn’t any hope on its ability to survive through these very horrid times.

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