BlackBerry admits plans to axe software and hardware jobs

The Canadian phone maker will consolidate several major departments

BlackBerry announces job cuts in smartphone development

BlackBerry has announced plans to cut an unconfirmed number of jobs from its software, hardware and applications departments.

The company has decided to consolidate these key divisions, meaning staff from across those groups risk losing their jobs, it admitted in a statement.

"As we continue executing our plan for BlackBerry's turnaround, we remain focused on driving efficiencies across our global workforce. As the company moves into its next stage of the turnaround, our intention is to reallocate resources in ways that will best enable us to capitalize on growth opportunities while driving toward sustainable profitability across all facets of our business," the statement read.

"We have made the decision to consolidate our device software, hardware and applications business, impacting a number of employees around the world."

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Blackberry has around 7,000 employees worldwide, although the majority are based in the company's Canadian homeland.

The smartphone maker is also considering closing its Swedish base of operations, according to Reuters, which could result in up to 100 redundancies.

These layoffs follow news that despite a net profit, the company's revenue fell 32 per cent in the last quarter, according to results.

Devices like the Passport and the Classic have so far failed to drive profits, and the company's share of the global smartphone market now sits at around 0.3 per cent, according to IDC figures.

Instead, CEO John Chen has made it clear that business software such as BlackBerry Enterprise Server 12, the BlackBerry Experience Suite and BBM are where the company is going to refocus its efforts.

BlackBerry has said that it plans to bring in new talent to bolster "areas of strategic focus", including software, enterprise, security and Internet of Things.

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This decision is likely based on the fact that software and services now comprises almost 60 per cent of the company's revenue.

This new direction has seen a partnership with Samsung via its Knox system, and the purchase of encryption company Secusmart, both of which have helped cement BlackBerry's claim on being a leader in mobile enterprise security.

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