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BlackBerry starts thinking of selling its Waterloo office space

BlackBerry recently announced plans to reduce its workforce by 4,500 and also declared a quarterly loss that neared $1 billion. After reporting its Q2 results and cancelled the usual conference call with shareholders and analysts, BlackBerry promised they would “publish further details regarding its second quarter results in the Management’s Discussion and Analysis and consolidated financial statements, to be filed next week.”

According to the filing, which was spotted by the New York Times, BlackBerry has indicated that they are experiencing a slide in global subscribers, especially in countries they once dominated, noting “the intense competition impacting the company’s financial and operational results that previously affected demand in the United States market is now being experienced globally, including in international markets where the company has historically experienced rapid growth.” The main reasons for the decline in interest in BlackBerry was the lack of apps and users shifting towards cheaper smartphones that run Google’s Android operating system.

In addition, BlackBerry is thinking about selling off a number of its office buildings in the Waterloo region. The company has sought out ideas from many real estate brokers “to outline ideas to generate the largest possible return in as little time as possible.” Colliers apparently notes on their website that BlackBerry “has become the largest occupier of office space in the Waterloo Region” and “currently holding a regional inventory of 1.6 million square feet of office space, BlackBerry comprises nearly 15 per cent of the total office market.” The total value off all its real estate assets are estimated to be valued above $1.28-billion.

BlackBerry confirmed this news, saying “As we work to our target of reducing expenditures by approximately 50 per cent over the next three quarters, that includes optimizing our space. Should space become unnecessary for BlackBerry’s continued use, we will work with key partners in the community who may need some of our surplus space.”

Unfortunate.

Source: BlackBerry
Via: NYT & Globe

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