BlackBerry layoffs to cost $400 million, quadrupling earlier estimates

BlackBerry Layoff Costs $400 Million

BlackBerry’s cash reserves look set to take another hit. Bloomberg reports that BlackBerry said in a regulatory filing this week that laying off 4,500 workers — around 40% of its total workforce — will cost the company $400 million, or four times its original estimates. BlackBerry also says that it “plans to unload factories, manufacturing gear and property” as part of its larger cost-cutting plan, according to Bloomberg. BlackBerry last week reported second quarter results showing that the company recorded a GAAP operating loss of $965 million on sales of $1.6 billion, which marked a 49% year-over-year decline in revenues. The company has been slimming down while it works to complete a buyout with Fairfax Financial that would take it private for $4.7 billion.

Source:
Bloomberg
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