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Blackberry announces job cuts in bid for profitability

By Nithya Bose in Business News, posted February 13, 2024

BlackBerry will cut more roles in its cybersecurity sector to prioritize profitability.

The Waterloo, Ontario-based firm said it’ll separate its internet-of-things and cybersecurity divisions.

The company expects a positive cash flow in the upcoming fiscal year.

Blackberry said it identified cost-saving measures in its cybersecurity unit, particularly in the cost of goods sold and research and development.

It expects annual savings of approximately $27 million, alongside an extra $8 million from various other initiatives.

Additionally, BlackBerry has withdrawn from six of its 36 worldwide office locations, including one in San Ramon, California, to reduce general and administrative expenses.

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This move follows a previous announcement about eliminating around 200 positions, mainly in the cybersecurity department.

The company aims to decrease its operating cash usage this fiscal year and expects to achieve positive operating cash flow by the fourth quarter of fiscal 2025.

To facilitate the division of its businesses, BlackBerry has appointed dedicated chief financial officers, chief people officers, and general counsels.

It has also appointed management consultancy Alvarez & Marsal for assistance with the separation process.

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