Blackberry, which not too long ago held a premier spot in the mobile phone market, has fallen into financial trouble and is planning to lay off 4,500 employees. The BBC reported on Sept. 20, 2013, "Blackberry to cut 4,500 jobs amid earnings plunge." In an attempt to offset large losses Blackberry has announced it is planning to cut 40% of its worldwide workforce.
The firm said it anticipates a very large loss when it reports its second-quarter earnings next week. Shares of the firm crashed 17% after this announcement. Blackberry's chief executive Thorstein Heins has said, "We are implementing the difficult, but necessary operational changes announced today to address our position in a maturing and more competitive industry, and to drive the company toward profitability."
Michael Gorman has reported for Engadget that Blackberry expects a Q2 net operating loss of over $950 million. The firm's poor earnings can be largely attributed to the failure of the Z10 to sell well. BlackBerry anticipates revenue for Q2 to be $1.6 billion, which is roughly half of the $3.1 billion it earned in the last quarter.