Layoffs affecting all departments of BlackBerry could see the Waterloo-based smartphone maker shed 40 per cent of its workforce, according to a report in the Wall Street Journal.
The report, which was published Wednesday afternoon, cites “people familiar with the matter” as saying the layoffs would come in waves, but would all occur by the end of the year.
BlackBerry had 12,700 employees as of March.
Asked for comment by CTV News, a BlackBerry spokesperson said the company would not respond to on “rumours and speculation”.
“As previously stated, we are in the second phase of our transformation,” the spokesperson said.
“Organizational moves will continue to occur to ensure we have the right people in the right roles to drive new opportunities in mobile computing.”
Sameet Kanade, an analyst with Jacob Securities, says he’s not surprised by the report given the company’s continued financial difficulties.
“There’s clearly a lack of product portfolio that is selling,” he says.
“That implicitly means that they’ve got a bottom-heavy workforce.”
Kanade says the report, if true, is likely sparked by BlackBerry’s desire to make itself more attractive for potential buyers.
Earlier this month, the company registered with the federal lobbyist registry – a move believed to be a precursor to lobbying for changes to foreign takeover rules.
Two waves of job cuts were felt earlier this summer in the company’s Waterloo headquarters.
Approximately 250 local employees were laid off in July, with 100 more terminated in August.
In total, the company has cut about 5,000 jobs since it began its restructuring last year.
BlackBerry shares ended the day down 2.2 per cent, trading at $10.64 late Wednesday afternoon on the Toronto Stock Exchange.
The company will release its latest quarterly financials on Sept. 27.
With files from The Canadian Press
