BlackBerry is shedding an unspecified number of workers from its handset division in a bid to consolidate its businesses and return to profitability.
The company's former high position in the smartphone market has been eroded by competition from firms including Apple, Google and Samsung, and the latest earnings release showed modest profit and a marked decline in revenues.
The firm posted revenues of $660m for its fourth quarter, a decrease of almost a third on the $976m posted in Q4 2014.
Chief executive John Chen said at the time that BlackBerry is going through a transitionary period in which it will favour software over hardware.
"Our focus this past year was on getting our financial house in order while creating a multi-year growth strategy and investing in our product portfolio. We now have a very good handle on our margins, and our product roadmaps have been well received," he said.
"The second half of our turnaround focuses on stabilisation of revenue with sustainable profitability and cash generation."
Now, BlackBerry has released a statement confirming the redundancies, but declined to elaborate on the number of workers involved.
"We have made the decision to consolidate our device software, hardware and applications business, impacting a number of employees around the world. We know that our employees have worked hard on behalf of our company and we are grateful for their commitment and contributions," the firm said.
"One of our priorities is making our device business profitable. At the same time, we must grow software and licensing revenues. You will see in the coming months a significant ramping up in our customer-facing activities in sales and marketing."
BlackBerry had a mobile market share of less than one percent in 2014 and a weak footing in the hardware market. Despite this the firm did see a return to profit in its last earnings and this has reportedly made it an attractive proposition for potential suitors including Microsoft.
Gartner vice president and distinguished analyst Ken Dulaney said in March when BlackBerry's Q4 earnings were released that the firm had to do something, and soon.
"Transitioning from a $3bn hardware-software combo to a $1bn software company is difficult while in the spotlight of Wall Street," he said.
"It would be nice if they could go private or split the company, but I don't think Chen has the financing options to pull this off right now."
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