The Canadian company BlackBerry continues to take rigorous action against potential losses and plans further job cuts in its cybersecurity business. The measures are intended to help make the company more profitable.
In its hometown of Waterloo, Ontario, BlackBerry announced further layoffs in the cybersecurity sector on Monday. This is part of the company's efforts to achieve profitability. According to BlackBerry, the separation of business areas for the Internet of Things and cybersecurity has already made progress. The company expects a positive liquidity position for the coming fiscal year.
The company was able to identify efficiencies in its cybersecurity business, particularly in the areas of cost of goods sold and research and development. The layoffs are expected to generate annual savings of approximately 27 million US dollars, with an additional 8 million dollars coming from other measures.
In addition, BlackBerry has already closed six of a total of 36 branches worldwide, including in San Ramon, California. This is intended to reduce general administrative costs.
Already in the last quarter, the company announced the reduction of about 200 positions, mainly in the cybersecurity area. BlackBerry expects to reduce the operating cash flow in the current fiscal year and to become positive in the fourth quarter of the fiscal year 2025.
In addition, the company has already appointed CFOs, HR directors, and legal advisors for both business units. The management consulting firm Alvarez & Marsal has been tasked to assist with the separation.
With these steps, BlackBerry demonstrates its intention to improve the company's economic efficiency and withstand the intense competitive pressure in the technology industry.
Here is the translated heading to English:
"The company thus commits to a clear direction for the future and hopes to create a solid foundation for further growth with the announced measures. Investors and shareholders can look forward to seeing how these strategic decisions will impact the company."
