BlackBerry lays off workers to improve its position

The Canadian phone manufacturer has decided to layoff some workers.

The Canadian phone manufacturer, BlackBerry, has decided to lay off some workers. BlackBerry news reported that the company has proclaimed to cut an unknown number of jobs in its products enterprise. The decision has followed the closure of its offices in Sweden.

The management of the technologically advanced company believes that its anti-workers initiative would help it improve its operations. Therefore, it is expected that this step would reduce the number of manufacturer’s employees by 100. Experts stated that the job reduction would not improve the financial position, as the organization is suffering from a weak growth in sales revenue.

BlackBerry news today informed that the company is not new to the cost reduction process, as it has previously taken a number of steps to minimize its expenses, such as laying off more 9700 workers in a time span of more than two years, relieving itself from assets, and selling components of its production business and handset design. These measures have not only helped it earn small profits but have also improved its cash flow position.

Market sources highlighted that the earning ability of the corporate giant has been adversely affected, as its sales revenue has declined from $20,000,000,000 to $3,650,000,000 and consequently, highly profitable service revenue has suffered. Its management has found out that the loss of subscribers has contributed to the decrease. Now, it expects that its software department would shoulder its burden of income growth and recovery.

Blackberry breaking news affirmed that the department has successfully developed a number of advance digital products, such as Enterprise Mobility Management Software, Blackberry Enterprise Server, BlackBerry messenger, and QNX embedded system. The company intends to increase its software revenue by 200% in 2016. The manufacturer has taken a number of steps to benefit its customers, such as acquisitions of Secusmart and Movirtu.

Secusmart was acquired to serve businesses, government departments, and telecommunication firms, while Movirtu was purchased to address the concerns of the mobile operators. The company has stated that it intends to grow its software and licensing revenue. Industry experts believe that it should devise efficient strategies to penetrate into the competitive market; otherwise, it would suffer, as its income would continue declining.

IBM is a multinational behemoth with a reputation to maintain. It is probable that the termination of workers would not only demotivate the company’s residual workforce but also adversely affect its reputation, as labor unions might protest against the North American smartphone-manufacturing giant.