[Mr. Marco]

Oops! BlackBerry even worse off than it thought - Oct. 2, 2013

How did this happen? How did they just discover things are worse than what seemed like abysmal before?

Anyone here have insight into this?

[howarmat]

Well the article is a little overboard. BB estimated it was going to cost $100 milliion for the restructure but its going to take $400 million. So that is another $300 that BB has to burn. Its not great news but the 4500 layoffs were not expected is my guess. So that adds a good chuck.

[Mr. Marco]

Well the article is a little overboard. BB estimated it was going to cost $100 milliion for the restructure but its going to take $400 million. So that is another $300 that BB has to burn. Its not great news but the 4500 layoffs were not expected is my guess. So that adds a good chuck.

Three times as much in comparison to their estimates? What the hell is going on up there? I know estimates are, well, estimates, but three times as much.... What the hell.

[howarmat]

they assumed sales would be better and when that doesnt happen they have to cut more people etc. it all costs money to save money

[amazinglygraceless]

The big and aggravating problem with that article is that it makes it seem as if the entire $400 million is the result of the 4500 layoffs. It isn't. At that level, that would constitute almost $89K per outgoing employee.

In addition to the cost associated with the terminations there are also cost associated with restructuring the company. The estimate could have changed because the restructuring plans changed. I know that isn't the most elegant of answers but there you have it.

[heymaggie]

There are a lot of assets that you invest in when you think you are going to sell tens of millions of phones per year - like factories. When you find out that you're going to be selling a lot less then all that capacity becomes unnecessary. You have a factory that is on your books as being worth tens of millions but what you now have is a building with used equipment.