BlackBerry to increase yearly net profit by USD100M by reducing costs, improving margin


(MENAFN) Canadian-based smartphone technology firm BlackBerry Ltd. has announced its ambitious goal of boosting its annual net profits by USD100 million, leveraging a combination of spending cuts and enhanced profit margins. This initiative builds upon the company's previously disclosed plan, unveiled last quarter, to curtail spending by USD50 million. Currently operating in the domain of information security programs, BlackBerry also revealed its intention to further streamline its operations by reducing its workforce in the cybersecurity sector.

Despite these cost-saving measures, BlackBerry has maintained its revenue projections for the ongoing quarter, estimating revenues to range between USD150 million and USD159 million. The company had previously outlined its strategy to trim expenses by USD50 million annually, with a primary focus on optimizing operations within the cybersecurity segment. As part of this plan, BlackBerry intends to lay off approximately 200 employees within the cybersecurity division.

In the current quarter, BlackBerry is intensifying efforts to simplify its expenditure structure. The company aims to achieve additional cost savings by implementing further job cuts in the cybersecurity sector, which are anticipated to yield approximately USD27 million in annual savings. Additionally, BlackBerry is exploring alternative measures beyond workforce reductions to generate savings amounting to USD8 million. These strategic initiatives underscore BlackBerry's commitment to enhancing operational efficiency and bolstering its financial performance amidst evolving market dynamics.

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