BlackBerry have sought to reassure its customers about its future by publishing an open letter online. Released on Tuesday, the one-time smartphone leader admits it is facing “challenging times”, but wants the BlackBerry faithful to know:
You can continue to count on BlackBerry.
The letter has been released at a time when there is uncertainty regarding the technology firm’s future. BlackBerry announced a net loss of $965m (£600m) in the second quarter of this year as a result of poor sales of its new Z10 and Q10 smartphones. Following this setback, it emerged BlackBerry planned on implementing a major restructuring programme, leading to 4,500 job cuts (40% of its workforce), and the company was in talks with Fairfax Financial over a sale deal worth $4.7bn.
Despite all this, the ailing company has pointed to its substantial cash on hand and debt free balance sheet as reasons not to worry, but realises more needs to be done in order to ensure success:
We are restructuring with a goal to cut our expenses by 50 percent in order to run a very efficient, customer-oriented organization.
These are no doubt challenging times for us and we don’t underestimate the situation or ignore the challenges. We are making the difficult changes necessary to strengthen BlackBerry.
Through the open letter BlackBerry has sought to reassure its faithful customers it is not going anywhere, but it does very little to reassure investors that it has a plan to turn itself around. Maybe BlackBerry should stop focusing on trying to comfort its current customer base (which is significantly smaller than in previous years, hence its poor sales), and focus on relieving the doubt which has encapsulated investors by concentrating on a viable plan to get itself out of the hole it has dug itself into.
The letter can be read in full here.