BlackBerry Ltd., the Canadian industrial giant, announced another size-down of its workforce on Tuesday. This announcement adds more numbers to the thousands of employees who have been let go by the company ever since Mr John S. Chen took over as the CEO of the company. Mr Chen’s modus operandi for the company comes in the wake of BlackBerry’s currently plummeting sales of its smartphones.
Unable to keep up with the stiff competition offered from other smartphone makers in the industry such as Apple and Samsung, BlackBerry’s lack of innovations is the main cause to blame. Mr Chen’s agenda is hence focussed on innovation and tightening of expenditure.
At the peak of its stock value at close to $230 in July 2007, BlackBerry’s stocks have staggered and fallen down close to a measly $8 in 2015. Also, at its most successful period, the number of employees numbered about 20, 000 all over the world. This was later drastically cut down to about 6,200 earlier this year. With the current cut down, the numbers are expected to dip even lower.
Some of the important changes that Mr Chen has brought within the company as its CEO include centering of most of the employee base near the company’s HQ in Ottawa and Toronto; and outsourcing smartphone development and manufacturing. These radical changes are expected to bring about a positive change in the company’s future development.