BlackBerry has announced plans to lay off 4,500 employees, which represents 40% of its global staff and nearly $1 billion in net operating loss last quarter.
The company’s stock plunged 20% on the announcement, with shares trading at $8.36 per share in late-afternoon trading.
BlackBerry had been scheduled to release earnings next week. But the Canadian company said late Friday afternoon it expects a loss of about $950 million to $995 million for the quarter, including a massive inventory charge due to increasing market competition.
The BlackBerry, pioneered in 1999, was the dominant smartphone for on-the-go business people and other customers before Apple debuted the iPhone in 2007. Since then, BlackBerry Ltd. has been hammered by competition from the iPhone as well as Android-based rivals like Samsung.
BlackBerry has hired PricewaterhouseCoopers LLP to evaluate the company for potential buyers, according to Bloomberg.