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BlackBerry, a leading cybersecurity firm, announced plans to achieve an additional $100 million increase in annual profit through extensive cost reduction initiatives, including workforce reductions.
Continued Cost Reduction Efforts:
This new target builds upon BlackBerry’s existing $50 million annualized cost reduction plan, which included 200 job cuts in the previous quarter.
The company remains committed to streamlining operations and maximizing efficiency.
Strategic Focus on Business Segmentation:
Despite scrapping its initial public offering (IPO) plans for its Internet of Things (IoT) business in December, BlackBerry remains focused on segregating its IoT and cybersecurity divisions into fully independent entities.
Establishing separate leadership teams for each division marks a significant step towards this objective.
Progress towards Divisional Separation:
BlackBerry disclosed that discussions with a prominent external consulting firm are underway to facilitate the smooth separation of its IoT and cybersecurity businesses.
This strategic move aims to enhance operational clarity and optimize performance within each division.
Further Cost Reduction Measures:
In alignment with its commitment to fiscal prudence, BlackBerry is implementing additional cost-saving measures in the current quarter.
Notably, the cybersecurity business is undergoing further layoffs, projected to yield yearly savings of approximately $27 million, contributing to the company’s overall profitability objectives.
