[_dimi_]

Guys, job cuts are real. We'll probably hear in ER. But. We lost some 600 to 800 jobs. This obviously means classic, leap, passport aren't bringing in enough revenue to necessitate job cuts.

But it also means BlackBerry is shifting more and more hardware side to the likes of Samsung, Foxconn and doesn't require as many people in that division.

Two offices were also closed

I guess reduction of 600 or so jobs would save BlackBerry about $35M in yearly payroll. Though they'd probably take one time charge for severance pay etc.


Posted via CB10

How long you reckon this move was in the works? How many handsets you think JC hoped to sell so he could've saved the 600 jobs?

35M is a lot.. but perhaps it's nothing more but optimizing a company.

Posted via CB10

[notafanofyou]

More FUD from the FUDDERS!



BUNK! Absolute BUNK!

Don't worry to much about the noise as long as the criminal WS insiders keep adding or creating new positions in BBRY and short interest numbers keep going down .

Posted via CB10

[notafanofyou]

Guys, job cuts are real. We'll probably hear in ER. But. We lost some 600 to 800 jobs. This obviously means classic, leap, passport aren't bringing in enough revenue to necessitate job cuts.

But it also means BlackBerry is shifting more and more hardware side to the likes of Samsung, Foxconn and doesn't require as many people in that division.

Two offices were also closed

I guess reduction of 600 or so jobs would save BlackBerry about $35M in yearly payroll. Though they'd probably take one time charge for severance pay etc.


Posted via CB10

Thanks for the insight.

Posted via CB10

[BACK-2-BLACK]

If I may pontificate, with the news of hardware layoffs, software hire, Chen statement that hardware is a very important part moving forward. I smell licensing of BB10. Either that or the hardware division was still fat and needed more Jenny Craig action.... again, just pontificating

CB10'n it....via da Z30

I like the potential licensing idea... sounds like a juicy possibility.

This recent news brought up a few thoughts, and curious to see how you all see it:

1. Are there serious plans, shifts and moves to licensing hardware, contracting out those services?

2. Bit of a head scratcher, in that JC had announced not too long ago that layoffs were behind us... and now this blip.

3.. Did not disclose headcount... was it significant and didn't want to worry the shareholders, or insignificant and nothing to worry about? (even though losing a job is significant, but you know what i mean).

4. They "quietly" released this on the Friday before Memorial day.... was it planned this way so there wasn't a negative knee jerk reaction by the market and basically buying another day for things to settle since the US market is closed today?

5. Should it be a concern that this was done because maybe margins are not looking too good and maybe next ER hardware numbers need to improve?

6. OR... will the market see this as positive that they are taking action to control costs, etc... because have seen on many occasions where there is a positive reaction and market likes the aggressive action.

7. The fact that old news is used to piggy back on this recent news is lame and seems like the media is trying to still keep the theme of "look, see, BB is still sinking".... which is total BS...

9. Share buy back coupled with this move was strategic?

10. Basically, should we be concerned or not?

[JonCBK]

I'm not expecting any of these handsets to bring in large revenues. But I suspect with the specs in them and the prices set for them that all the handsets are going to be cash flow positive. I think bbry is just streamlining the business with job cuts. It is brutal, but they are probably offloading lots of the core work to China and the manufacturers there. While also remaining content to sell older generation handsets going forward and rely on the efficiency of the bb10 OS to allow the phones to operate comparably. Bbry just isn't going to need so many folks I. Hardware though they are going to keep making hardware.

FYI, I'm probably going to get the Classic this week. It will be neat to have the tool belt again.

[BACK-2-BLACK]

Can't say.
We'll hear in ER, I am sure.

Posted via CB10

you can mention a number.... but not the source?

How are we to believe this then?

[jojowan]

Many thanks for your info!

But I am a bit worried about the morale of employees and their perception on the credibility of Chen. Coz not long ago Chen said that the restructuring phase was completed - there would be no more job cuts and the company would add jobs instead.

Posted via CB10

[kfh227]

Cash burn as much as you want, it is a low price to pay for the signal it sends to 1. Employees : Management cares about employees morale, and 2. The general public: we ain't dead yet.

If there was a way to measure media attention (positive this time) this move is allowing on BBRY, that on top of what it allows you to do internally with your employees, the cost /benefit ratio of this share repurchase plan may be of substantial benefit to BBRY. Even if this was voted down...

Posted via CB10

If they were reducing the share count 10%, I would care. This is non news. Companies do these buy backs all the time. just to prevent shareholder dilution from options based compensation.

[bspence87]

you can mention a number.... but not the source?

How are we to believe this then?

He worked for BlackBerry and has friends still working there.
Also, he's never mislead us before.
Don't bet the farm on it, but Chrys is credible.

Thanks for the heads up Chrys. It's terrible to see jobs lost, but I suspect there are an equal number of hirings, in different areas of the company.

Posted via CB10

[Bumwhistle]

Guys, Chen knows more about what's going on than we do. I'm sure he's doing the best possible thing considering. We just have to have faith and trust in Chen and the excellent people around him. Everything is going to be fine.

Posted via CB10

[Bacon Munchers]

There is chatter on stock boards that BlackBerry is thinning the unneeded jobs, to prepare for (wait for it)...

A Microsoft buyout.

Possible source: http://www.phonearena.com/news/Micro...illion_id69628


This is a good article: http://trak.in/tags/business/2015/05...y-acquisition/

Whatever happens, I really dig the idea that this huge rumour is on a CDN only trading day. Lol!

[spiller]

you can mention a number.... but not the source?

How are we to believe this then?

Then don't. Could be someone at Blackberry that is not allowed to be giving details, but did. Or made up. You choose if you want to believe it. Sounds about right to me.

[Andrew4life]

There is chatter on stock boards that BlackBerry is thinning the unneeded jobs, to prepare for (wait for it)...

A Microsoft buyout.

Possible source: http://trak.in/tags/business/2015/05...y-acquisition/

Cuts usually happen after, not before.
E.g. When MIcrosoft acquired Nokia's cellphone business.

Posted via CB10

[Bacon Munchers]

Cuts usually happen after, not before.
E.g. When MIcrosoft acquired Nokia's cellphone business.

Posted via CB10

I suppose at this moment, all we should focus on is the last statement the BlackBerry made to media:

�As the company moves into its next stage of the turnaround, our intention is to reallocate resources in ways that will best enable us to capitalize on growth opportunities while driving toward sustainable profitability across all facets of our business,� the Canadian company told the AFP news agency.

Read more: http://www.digitaltrends.com/mobile/...#ixzz3bAA1ToEm

[chrysaurora]

Source please?

By. BlackBerry Passport User

Sorry but these two sentences seem contradictory. Can you clarify ?

Posted via CB10

Sorry. I meant, jobs cuts were probably necessiated for two reasons:
1. Device sales are probably not bringing in as much revenue
2. More reliance on Foxconn, Samsung so BB probably doesn't need as much staff anymore.

How long you reckon this move was in the works? How many handsets you think JC hoped to sell so he could've saved the 600 jobs?

35M is a lot.. but perhaps it's nothing more but optimizing a company.

Posted via CB10

No idea. I am just multiplying 600 with $60,000 to come up with roughly $35M yearly payroll savings. But who knows, job cuts could have been outside US/Canada/Europe where salaries are much lower. But they are also closing two offices so that's a saving too. So, I think (my guess of) $35M yearly saving should be close to accurate.

you can mention a number.... but not the source?

How are we to believe this then?

June 23 is ER. I guess we'd have to wait for confirmation on June 23 earning report. I have no reason to doubt my information but we'll know for sure on June 23.

I think a number of sales roles are indeed open at BlackBerry right now. So, they are indeed hiring. Not as many as they laid off but they are hiring. So, this rebalancing of workforce is not bad for us as shareholders. Only thing bad here is that lower-than-expected revenue is probably the main driver.

[leafs123]

There is chatter on stock boards that BlackBerry is thinning the unneeded jobs, to prepare for (wait for it)...

A Microsoft buyout.

Possible source: Microsoft to buy BlackBerry for $7 billion?


This is a good article: Blackberry Acquisition: Apple, Microsoft, Xiaomi & Lenovo Are In The Race!

Whatever happens, I really dig the idea that this huge rumour is on a CDN only trading day. Lol!

Not trolling but I think all these rumours should taken with a grain a salt. It's troubling that the same rumour that came out a few weeks ago is back out, just recycled with new info (job cuts) and republished. Any XYZ blog can publish something and it's sad that the stocks moves up or down because of it.

[BACK-2-BLACK]

Thanks for the reply Chrys.

I know you were an ex-employee, and someone felt the need to tell me it was my choice to agree or not (thank you for that)....but I just wanted to highlight that quoting numbers "just like that" is going to get questions.

Not saying your numbers are right or wrong, but atleast can tell us that your source is someone at BB? (not sure if you did, I may have missed it)

I think it's dangerous to have numbers thrown out there without support I suppose....

The media is notorious for not reporting the proper facts against BB.

Just like how MS stated only 8,000 units sold....

Anyway, hope the next ER will show the traction. Who knows if they will disclose any layoff figures. If they didn't now, they probably won't then either.

[jake simmons3]

Not trolling but I think all these rumours should taken with a grain a salt. It's troubling that the same rumour that came out a few weeks ago is back out, just recycled with new info (job cuts) and republished. Any XYZ blog can publish something and it's sad that the stocks moves up or down because of it.

7 billion is a joke

Posted via CB10

[chrysaurora]

Anyway, hope the next ER will show the traction. Who knows if they will disclose any layoff figures. If they didn't now, they probably won't then either.

Don't they disclose total headcount every ER? We can just compare headcount in previous quarter vs this quarter and figure out net reduction in workforce. As they are laying off, they are also hiring (mostly in sales, going by their career alerts).

[BACK-2-BLACK]

I'm not sure to be honest. I think they are obliged to report total headcount at some point, but not by department I don't think. Maybe just year end? I guess if they do a total someone can do the math and figure it out?
Again, not sure.
Just thinking that they no longer report the subscription figures and maybe go about it that way.

[chrysaurora]

7 billion is a joke

Posted via CB10

Most analysts are valuing BB very low. And (assuming it is true), Microsoft asked some investment banks to valuate BB, I am not surprised that these bearish-analysts came back with such valuation.

We the shareholders and, more importantly, BlackBerry management obviously believe it should be valued much much higher. So, $7B is going to be non-starter for JC. He won't even come on negotiation table if MS starts off with $7B.

[morganplus8]

Most analysts are valuing BB very low. And (assuming it is true), Microsoft asked some investment banks to valuate BB, I am not surprised that these bearish-analysts came back with such valuation.

We the shareholders and, more importantly, BlackBerry management obviously believe it should be valued much much higher. So, $7B is going to be non-starter for JC. He won't even come on negotiation table if MS starts off with $7B.

The problem with throwing around numbers like $ 7.0 B and $ 7.5 B is that no one has ever quantified what it means to a purchase when the market valuation includes $ 3.5 B in cash. I can tell you at least 75% of that cash is not part of the $ 7.0 B yet no one even mentions it. The valuation of assets should be net of cash, a special dividend should be paid to existing shareholders if $ 7.0 B is offered thus leaving us with something like a final takeout value of around $ 18.00/US per share fully diluted, for starters. We trade at $ 5.00/shr today less cash. It would cost $ 10.00/shr to cancel out those bonds in theory, they would not want this type of closure so the bond holders would convert leaving all of the cash for a dividend.

I would think that we would see $ 12.00/US/shr per 650 MM shares = $ 7.8 B plus at least a $ 5.00/US/shr in a cash dividend. From there, others will have a look at it. You just can't dismiss that war chest of cash, thinking it is part of the final number. A cash and dividend offer makes so much sense here. As long as I see rumours that don't address their cash, I don't believe them.

[BACK-2-BLACK]

No idea. I am just multiplying 600 with $60,000 to come up with roughly $35M yearly payroll savings. But who knows, job cuts could have been outside US/Canada/Europe where salaries are much lower. But they are also closing two offices so that's a saving too. So, I think (my guess of) $35M yearly saving should be close to accurate.

Just wanted to say that it costs the employer more than just the quoted salary. Using your example, if an employee makes $60k... then it would cost the company lets say $80K. The cost of benefits and resources to support the employee is also factored into their savings. Hard to say what that additional cost save is as it varies from employer to employer...but it is substantial.

[chrysaurora]

Just wanted to say that it costs the employer more than just the quoted salary. Using your example, if an employee makes $60k... then it would cost the company lets say $80K. The cost of benefits and resources to support the employee is also factored into their savings. Hard to say what that additional cost save is as it varies from employer to employer...but it is substantial.

Yeah, I know. I factored in all costs in my assumption of $60K per head. I assumed a lot of employees would probably also be from developing countries where wages are much lower (like $15k/year). But it is just a guess.

[BACK-2-BLACK]

7 billion is a joke

Posted via CB10

typo...they missed a "0"....

the only reason it would make ANY sense to me !!!