According to an internal memo obtained by Reuters, BlackBerry Ltd (NASDAQ:BBRY) is finally coming out of the storm it has been in, and seems to be on the path to growth, following a long and arduous restructuring process. A positive cash flow is expected by the end of the fiscal year.
“We have completed the restructuring notification process, and the workforce reduction that began three years ago is now behind us. […] More importantly, barring any unexpected downturns in the market, we will be adding headcount in certain areas such as product development, sales and customer service, beginning in modest numbers,” John Chen, the CEO of BlackBerry Ltd (NASDAQ:BBRY), wrote in a memo on Friday.
Chen has used many methods to stem the decrease, such as by selling non-core assets, partnering with other firms to increase the efficiency of BlackBerry Ltd (NASDAQ:BBRY)’s manufacturing and supply chain, and raising cash through selling the extensive real estate holdings BlackBerry Ltd (NASDAQ:BBRY) has in Waterloo, Ontario.
Over the past three years, BlackBerry Ltd (NASDAQ:BBRY) reduced its workforce by 60%, trying to relaunch itself. The fall from the top spot as the market leader in the smartphone industry with the advent of Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL)’s Android devices meant that their sales diminished dramatically in the last four years. However, Chen plans on staying competitive while ensuring BlackBerry Ltd (NASDAQ:BBRY) builds on its main strengths of mobile data security and mobile device management. It will also focus on areas with potential future revenue growth, such as acquiring Secusmart, a private German company specializing in voice and data encryption.
Chen has hired many former Sybase company staff members, possibly in an effort to replicate the company’s turnaround success. He mentioned that the company will be providing an upgrade to its device management system and its new Passport and Classic devices.
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