Cost-Cutting at BlackBerry Continues Amid $42M Q1 Net Loss

28 Jun, 2024

Cost-Cutting at BlackBerry Continues Amid $42M Q1 Net Loss

BlackBerry Ltd. continues to implement cost-cutting measures, resulting in significant savings and positioning the company towards profitability. CEO John Giamatteo announced that the Waterloo, Ontario-based tech company has made substantial progress in separating its cybersecurity business from its Internet of Things (IoT) division. This process has involved delegating responsibilities, initiating IT systems projects, and reducing back-office roles and facilities.

Although Giamatteo did not disclose the total number of jobs or sites affected by the cuts, BlackBerry previously revealed in February that it had eliminated 200 jobs and exited six of its 36 global office locations. The recent efforts are projected to deliver a total of US$125 million in savings. Giamatteo, who became CEO in December 2023, expressed pride in the company's swift progress.

These remarks coincided with BlackBerry reporting a net loss of US$42 million in the first quarter, compared to a US$11 million net loss the previous year. The company, which reports its financial performance in U.S. dollars, saw a loss of seven cents per share, up from two cents per share a year earlier. Revenue for the quarter ended May 31 was US$144 million, down from US$373 million a year prior, with the cybersecurity business contributing US$85 million, the IoT division US$53 million, and the licensing segment US$6 million.