Tags: BlackBerry | expenses | job | reductions

BlackBerry Job-Cutting Expenses Quadruple to $400 Million

Wednesday, 02 Oct 2013 02:01 PM

BlackBerry Ltd. expects to record about $400 million in restructuring charges, four times the amount it originally projected, as the company cuts its workforce by 40 percent and sells off equipment and real estate.

The expenses cover the cost of firing 4,500 workers, a move that will reduce BlackBerry’s staff to about 7,000 people, the Waterloo, Ontario-based company said in a regulatory filing late yesterday. As part of its cost-cutting plan, BlackBerry plans to unload factories, manufacturing gear and property. Those assets will be listed separately on its balance sheet until they are sold, the company said.

BlackBerry, coping with plunging sales and mounting red ink, is streamlining the business as it seeks to seal a $4.7 billion buyout deal with its largest shareholder, Fairfax Financial Holdings Ltd. The company agreed to the tentative offer last month after years of losing ground to Apple Inc. and Samsung Electronics Co. In addition to the job cuts, BlackBerry is writing down unsold phone inventory by almost $1 billion.

BlackBerry shares fell 1.8 percent to $7.78 at 9:42 a.m. in New York. The stock is trading more than a dollar below the $9-a-share offer price, signaling that investors have doubts about the deal.

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BlackBerry Ltd. expects to record about $400 million in restructuring charges, four times the amount it originally projected, as the company cuts its workforce by 40 percent and sells off equipment and real estate.
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2013-01-02
Wednesday, 02 Oct 2013 02:01 PM
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