Blackberry is attempting to diminish its extreme losses by cutting off 4,500 jobs which equals to 40% of its workforce. The company anticipated a loss of around 995 million dollars for its second-quarter earnings reports next week. The losses were essentially attributed to the unsuccessful sales of its new Z10 model smartphone. Only 2.7 million Z10 phones out of 6.8 million had shipped. Blackberry’s incapability of following today’s necessities and wants has made itself sailed down a cliff.
Its marketing techniques, which ultimately targets business men, has failed to drive the company into stable profitability. One of the methods of recovery would be reducing the Z10’s price, about a 20%, to resume its sales. It is a better idea to gain less profit from a product than having a complete loss. Hence, the phone’s sales would be directed to a different customer segment, and there would be a higher chance for Blackberry to ship more of its Z10s. Blackberry should instead cut off only 25% of its job, and invest the other 15% in hiring advisors that specialize in innovation.
http://online.wsj.com/news/articles/SB10001424127887323808204579083250005557232