1. JamieWilson01's Avatar
    (Reuters) - BlackBerry Ltd has concluded a protracted and painful restructuring process and is back on a growth footing, according to an internal memo to all its employees viewed by Reuters.

    "We have completed the restructuring notification process, and the workforce reduction that began three years ago is now behind us," said the memo from BlackBerry's Chief Executive John Chen that was sent out on Friday.

    "More importantly, barring any unexpected downturns in the market, we will be adding headcount in certain areas such as product development, sales and customer service, beginning in modest numbers," said Chen, who personally thanked those that have stayed with the company through the process.

    BlackBerry has shrunk its workforce by roughly 60 percent over the last three years as it attempts to reinvent itself. The company that dominated the smartphone market in its infancy has seen its sales dramatically eroded over the last four years by Apple's iPhone and a slew of rival devices powered by Google Inc's Android operating system.

    Chen, who took the reins at BlackBerry roughly eight months ago, has moved rapidly to stabilize the company by selling non-core assets, partnering to make the company's manufacturing and supply chain more efficient, and raising cash via the sale of the company's extensive real estate holdings in its hometown of Waterloo, Ontario.

    Chen, a well-regarded turnaround artist in the tech sector, intends to remain a competitor in the smartphone arena, but is focused on reshaping the company to build on its core strengths in areas like mobile data security and mobile device management.

    In the memo, Chen told employees that he believes BlackBerry is now well on its way to recovery and that he is confident the company will meet its goal of being cash flow positive by the end of the current fiscal year.

    He noted also BlackBerry, which had previously said it was trimming its workforce down to 7,000 from a peak of over 17,500 in 2011, is now in a position to make strategic acquisitions to strengthen areas that are likely to drive future revenue growth.

    Last week, BlackBerry announced one such deal with a move to acquire Secusmart, a privately-held German firm specializing in voice and data encryption. The deal is expected to burnish its credentials with some of its highly security-conscious clients like government ?agencies.

    Chen, who is well known for having turned around enterprise software maker Sybase Inc in the late 1990s, told employees in the memo that he is confident BlackBerry now has the right organization and team in place to execute its business strategy.

    Over the last few months, Chen has hired a number of former Sybase employees that helped engineer that turnaround before the company was sold to software giant SAP AG in 2010.

    Chen stressed in the memo there was "no margin for error to complete BlackBerry's turnaround to success", and he called on employees to remain focused as the company rolls out an upgrade to its device management system and its new Passport and Classic devices this fall.

    (Reporting by Euan Rocha; Editing by Ryan Woo)

    Via CB10 from Scotland using Z10STL100-2/10.2.1.3253
    08-05-14 03:37 AM
  2. lui22's Avatar
    Is this a good or bad or neutral story from them?
    08-05-14 04:11 AM
  3. JamieWilson01's Avatar
    I'd say it's a positive article.

    Via CB10 from Scotland using Z10STL100-2/10.2.1.3253
    08-05-14 07:38 AM
  4. MobileZen's Avatar
    This is welcome and encouraging news to employees and for BlackBerry overall. Positive signs that recovery is possible and future growth on the horizon.

    Posted via CB10
    08-05-14 07:54 AM
  5. FireChestApps's Avatar
    There are some great things ahead for BlackBerry.

    While some might argue they were late to the mobile OS party, they did use that extra time leverage the benefit of hindsight and build an OS that is more functionally coherent than the other mobile OS's.

    They also have a rather secure base of corporate customers and remain far more nimble than their competitors in the wider market. A very exciting time.
    08-05-14 09:05 AM
  6. abwan11's Avatar
    Perception is everything, Chen adds alot of it.

    Posted via CB10
    KCSFINEST likes this.
    08-05-14 09:39 AM
  7. crazigee's Avatar
    This is definitely good news. More layoffs would only signal more instability and wouldn't be well received by the market. The fact the are done shows BlackBerry is back on the right path. The Passport launch can now go ahead without being overshadowed by negative press about restructuring or layoffs.

    Posted using my Z10 via CB10
    08-05-14 11:15 PM
  8. anon1727506's Avatar
    BlackBerry is now well on its way to recovery and that he is confident the company will meet its goal of being cash flow positive by the end of the current fiscal year.
    For some reason I taught it was by the end of the physical year....so it's three more Earnings Reports, that barring and major assets sells they will be negative of cash flow..... with hopefully next June being the "return" to profits.

    Good news that there are no more "plans" for more lay-offs and that the plan to do some hiring.
    08-06-14 10:32 AM
  9. MarsupilamiX's Avatar
    For some reason I taught it was by the end of the physical year....so it's three more Earnings Reports, that barring and major assets sells they will be negative of cash flow..... with hopefully next June being the "return" to profits.

    Good news that there are no more "plans" for more lay-offs and that the plan to do some hiring.
    Maybe I should send out a job application for the Armchair CEO post.
    I am sure that I would be pretty successful.

    Posted via CB10
    08-06-14 11:00 AM
  10. anon1727506's Avatar
    Maybe I should send out a job application for the Armchair CEO post.
    I am sure that I would be pretty successful.

    Posted via CB10
    Nope they got a guy for that... where have you been?

    But I'm pretty sure they need someone to oversee the Marketing Department if you have a few ideas....
    08-06-14 03:18 PM

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