BlackBerry To Reduce Headcount In Cost- Cutting Drive
BlackBerry is making progress towards positive cash flow, announcing key measures in that regard.
It plans to increase annualised net profit by $100 million through cost cuts and margin expansion, adding to the $50 million in annualised cost savings announced in the previous quarter.
With the assistance of prominent management consultant firm Alvarez & Marsal, the company has made significant progress in establishing autonomous divisions for its IoT and cybersecurity businesses, including the formation of leadership teams and the start of the separation process.
To further optimise its cost structure, BlackBerry is cutting further roles inside its cybersecurity division, which will save approximately $27 million per year, in addition to $8 million from other non-headcount initiatives.
These approaches are intended to maintain industry-standard levels of R&D spending while implementing an efficient product roadmap. Additional actions in general and administrative functions, such as closing six global office sites, are projected to result in yearly savings of around $20 million. BlackBerry has closed six of its 36 global office locations to reduce general and administrative costs, including one in San Ramon, California.
This announcement follows a similar notification made last quarter regarding the elimination of around 200 personnel, primarily in the cybersecurity sector.
