BlackBerry is preparing for a new round of layoffs as it seeks to reallocate resources. The Canadian company says partnerships and a fresh focus on sales and marketing are likely to mean new jobs, but some of its existing jobs will have to be cut. The cuts are expected to hit workers in BlackBerry’s device unit, including employees who develop smartphone software and apps.
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Roughly 7,000 people are currently employed by BlackBerry, which was once the world’s leading smartphone maker. Less than a year ago, CEO John Chen told employees that the company was finished with layoffs.
Chen, formerly of Sybase, has brought BlackBerry back from the brink, after taking control of the company in late 2013. Chen has helped the company capitalize on its popular BlackBerry Messenger (BBM) software by bringing it to iOS and Android devices. He has also doubled down on BlackBerry’s enterprise security solutions in an effort to make the most of the company’s patented encryption technology.
BlackBerry has also continued to launch new smartphones under Chen’s leadership, but none of them have been strong sellers. According to IDC, BlackBerry still has less than 1% of the smartphone market.
BlackBerry has had positive earnings for two consecutive quarters now, but sales continue to slip. Revenue has declined every quarter since May 2013. For the quarter ended this February, BlackBerry had roughly $660 million in revenue, the lowest sales figure reported by the company since May 2006.
