BlackBerry boosts restructuring charge estimate to $400 million
TORONTO (Reuters) - BlackBerry Ltd(BB.TO)(BBRY.O) expects to take $400 million in pre-tax charges related to cost-cutting, quadruple its estimate of $100 million earlier this year, the smartphone maker said in a regulatory filing late on Tuesday.
The company expects to spend $400 million in severance, "network simplification costs" and other expenses in this fiscal year and the first quarter of next year combined. In the first quarter it said it would take charges of $100 million for the current fiscal year, ending March 1, 2014.
BlackBerry, which has lost market share to Apple Inc's(AAPL.O) iPhone and phones that run Google Inc's(GOOG.O) Android operating system, said last month it planned to shed 4,500 jobs, more than one-third of its workforce.
The company has signed a tentative $9-a-share agreement to be acquired and taken private by a consortium led by Fairfax Financial Holdings Ltd (FFH.TO). But its stock has languished well below the offer price, a sign investors are skeptical the deal will succeed.
(Reporting by Allison Martell; Editing by Jeffrey Benkoe)
- Tweet this
- Share this
- Digg this
- Supreme Court turns the clock back with gay sex ban
- CORRECTED-UPDATE 2-India's Supreme Court turns the clock back with gay sex ban
- UPDATE 3-GM to halt car production in Australia, industry in crisis
- Obama and Castro shake hands, Zuma humiliated at Mandela memorial
- Google feeds India and China from data centres next door
Google Inc opened its first two data centres in Asia on Wednesday to cater to the world's fastest growing consumer technology markets, but the company has no plans to open one in China or India. Full Article