BlackBerry To Add Workers, Achieve Positive Cash Flow This Year
BlackBerry (NASDAQ: BBRY) shares rose more than three percent Tuesday after its latest chief executive told employees that a long string of layoffs is over and the company will start adding workers.
John Chen, named CEO eight months ago, said a workforce reduction that started three years ago "is now behind us," and that the company will achieve its aim of becoming cash-flow positive by the end of 2014.
"We will be adding headcount in certain areas such as product development, sales and customer service, beginning in modest numbers," Chen told employees in a memo leaked Monday to Reuters.
The once high-flying Blackberry cut 60 percent of its workers in the past three years as its market share in the smartphone market tumbled to less than one percent from nearly nine percent in 2011.
As recently as last September, the company agreed to be acquired for $4.7 billion by private equity investor Fairfax Financial Holdings. But Fairfax, which held a 10 percent stake in Blackberry, elected instead to invest a further $1 billion and install Chen as chief executive.
Blackberry traded recently at $9.45, up 3.28 percent.
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