BlackBerry layoffs to affect 'all facets of the company'

The recently announced 40 per cent reduction in BlackBerry's global workforce will be broad-based and cut across all departments,says the Canadian company's managing director for North America.

It's also too early to knowhow many of BlackBerry'srecently announced 4,500 layoffs will affect employees based atits headquarters in theWaterloo, Ont., region, Andrew MacLeodtold CBC Kitchener-Waterloo on Monday.

When asked byThe Morning Edition host Craig Norriswhen more details of the layoffs would be made available, hereplied,"When you're going through a restructuring like this, it's going to be in all facets of the company at all levels of the company.

"I think it's a little early right now to start giving a forecast or a timeline, although we do fullyanticipate to have this difficult process managed through in approximately nine months."

His comments arethe first by a BlackBerry executive since the company announced on Friday that it is expected to postlosses of nearly $1 billion when it releases its second-quarter earnings report this week. The company also announced there will be 4,500 job losses accounting for 40 per cent of its global workforcebut did not give any details about how that would unfold or when it would occur.

"We know how difficult this news is. We know that it's a very trying time. We know that Friday's announcement is a bit of a body blow," MacLeod said.

"We are working very, very hard to take the incrediblydifficultbut equally necessary steps to put us in a position to start winning again and Friday's announcement, as painful as it is, was a critical step in that process."

Blackberry stock fell 16 per cent, or $1.74, to close at $9.08 on the Toronto Stock Exchange on Friday after announcing its layoff plans and 2nd quarter loss.On Monday, the stock was trading down 6.5 per cent at mid-day at $8.49.

But news that FairfaxFinancial Holdings would lead a consortium to buy the troubled smartphone maker for $4.7 billion sent the share price bouncing up again, to the $8.80 to $9 range in afternoon trading.

The company confirmed the poor performance of theZ10devices released earlier this year, saying it expects a non-cash,pre-taxcharge against inventory and supply commitments in the second quarter of approximately $930 million to $960 million, which is primarily attributableto BlackBerryZ10devices.

BlackBerryis undergoing what it calls a review of its "strategic alternatives" including the possible sale of the company.

Once a leader in the smartphone market, BlackBerry expects to report sales of 3.7 million phones in the quarter. That compares with Samsung's 71.3 million phones and Apple's 31.9 million phones in the same quarter.