BlackBerry CEO hoping to avoid future layoffs, expects to be worthwhile by 2016
This morning’s earnings report won’t have been BlackBerry’s favorite second, nevertheless John Chen seems assured in his imaginative and prescient for the company’s future — and his potential to point out points spherical. Speaking with a small group of analysts and reporters, Chen talked about that this coming yr will in all probability be essential for BlackBerry, saying that it will be an funding yr. We won’t say we disagree; undoubtedly the deal with Foxconn (which Chen specifies does not include any licensing agreements, ensuring authorities relations keep beneath BlackBerry’s administration) would require a lot of additional effort and belongings on his agency’s half. Chen seems adamant that this “funding” will not embrace layoffs, however, “if [he] can avoid it.” Undoubtedly no guarantee, in truth, nevertheless Chen is assured that this quarter was solely a hiccup which will help BlackBerry uncover future financial success, and that he expects his agency to be cash motion-neutral by 2015 and worthwhile by 2016, and must do it using progress, comparatively than saving money by means of cuts. In fact, Chen plans to assemble up an Enterprise product sales drive “to take it once more to the market.”
Chen moreover spoke to his new place as chief authorities, saying that the “interim” title has been eradicated, and he’s now the individual in value for the foreseeable future. Nevertheless for a approach prolonged, exactly? As long as it takes to get the company on strong financial footing. “My step one was to have the company financially out of harm’s strategy. I cannot say I’ve executed it as we converse, nevertheless we’re on a superb path.” He undoubtedly wins the prize for in all probability probably the most assured CEO of the yr.
Furthermore, Chen talked about that BlackBerry will in all probability be setting up a security know-how center in Washington, DC to work with big authorities consumers identical to the Division of Safety. This new center, which can in all probability be quite a lot of thousand sq. ft, will primarily make use of engineers (although he doesn’t specify if these engineers could be transferred there or if BlackBerry will benefit from a hiring spree). That is smart, given Chen’s insistence that one among many agency’s largest areas of focus need to be on security for regulated industries, by which authorities relations will play an unlimited place.
Moreover, do you have to’ve been concerned that these present bulletins suggest that the company won’t put as a variety of an emphasis on keyboards as a result of it has executed before now, good news: The model new CEO doesn’t plan to ditch keyboards anytime shortly — he talked about that BlackBerry shoppers nonetheless want them, so he’ll proceed to take heed to his shoppers.