BlackBerry has written an open letter to its customers, claiming it is making 'the difficult changes necessary' to strengthen the company amid plummeting financials and falling sales.
The company posted a quarterly loss of almost $1bn last month, as it wrote off $934m due to unsold Z10 smartphones. The device, its first to run the new BB10 operating system, failed to catch on with either consumer or business customers. The company is currently trying to find a new buyer but the likeliest outcome appears to be a break-up of the company, despite interest from founding members Mike Lazaridis and Douglas Fregin.
In the open letter, posted on its website, the company said that customers 'can continue to count on BlackBerry', citing its cash balance and lack of debt. It said: 'We are restructuring with a goal to cut our expenses by 50 percent in order to run a very efficient, customer-oriented organization. These are no doubt challenging times for us and we don’t underestimate the situation or ignore the challenges we are facing. We are making the difficult changes necessary to strengthen BlackBerry.'
Despite boasting of its cash pile, the company is still spending hundreds of millions to make its BB10 devices work. Its cash holdings fell by $500m to $2.57bn in the quarter ending 31 August.
The latest BlackBerry smartphone, the phablet sized Z30, went on sale on 27 September.
Author: Graeme Neill