BlackBerry May Lay Off 40% of Staff This Year

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By Seth Fiegerman2013-09-18 11:29:04 -0700

Just hours after BlackBerry unveiled a new smartphone, more bad news has emerged about the company.

BlackBerry is said to be planning to lay off as much as 40% of its staff by the end of the year to cut costs and better position itself to compete in the smartphone market, according to a report in The Wall Street Journal . The company had more than 12,000 employees by last count, meaning that as many as 5,000 workers may be in danger of losing their jobs in the next couple months.

BlackBerry did not immediately respond to our request for comment.

See also: Who Would Buy BlackBerry?

Earlier this summer, BlackBerry confirmed laying off 250 employees and reports suggested that more layoffs might be coming. The company also laid off 5,000 employees during the 2012 fiscal year.

The smartphone maker has struggled to compete against businesses like Apple and Samsung in recent years. BlackBerry is now in the process of looking for a potential buyer, with the possibility that it may be sold for parts or spin out certain divisions like BBM into new businesses.

BlackBerry stock was down more than 2% on the day following the report.

Image: Ethan Miller/Getty

Topics: BlackBerry, Business