BlackBerry fires Sales Chief, additional layoffs imminent

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By Jonathan Espinosa Comment

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(Image Credit: berryforme.com)

After disappointing sales numbers for the first quarter, BlackBerry has planned a round of layoffs for the company. according to Mashable. The handheld device manufacturer has already fired one of its key executives, Vice President of Sales in the U.S., Richard Piasentin.

As reported by the Wall Street Journal blog, the company is planning to cut a large number of jobs mostly within middle management. It is not clear how many jobs will be eliminated in the round, but it would be in addition to the 5000 employees laid off by BlackBerry in the last fiscal year. At the moment, the company currently has around 11,000 employees.

BlackBerry reported its first quarter earnings last month at $3.1 billion, coming in lower than the expected $3.36 billion. It also reported a net loss of $84 million for the quarter, leading to a 25 percent drop in share price.

In the same quarter, BlackBerry reported that it has only shipped 2.7 million BlackBerry 10 products which is incredibly disappointing for the company. The company banked on the sale of BlackBerry 10 products to recover from its disappointing stock performance, but the lack of interest may have put them further down the hole. Company CEO Thorsten Heins told stockholders that a sale of the company is not in the works, but he is open to partnerships. He also reinforced that the marketing and iteration of the BlackBerry 10 platform is still in early development.