BlackBerry Mulls Closing Sweden Operations

By Ben Dummett 

BlackBerry Ltd. is considering closing its offices in Sweden, a move that would put up to 100 employees out of work, as the company focuses on developing mobile security and productivity software to reignite growth.

The Canadian smartphone maker, which employs about 7,000 people globally, said it would make a final decision on the planned closure after completing talks with the employees' unions.

"At this time, we are considering the closure of our offices in Sweden [and] since this may impact approximately 100 employees, we are now initiating consultations with the employees' trade unions," a BlackBerry spokeswoman said in an email. The company didn't indicate when it hoped to make a final decision.

BlackBerry's operations are largely nonunionized, though some locations are, particularly in Europe.

The potential closure underscores that BlackBerry continues to keep an eye on expenses even after indicating last year that the bulk of its cost-cutting initiatives were over.

The operations in Sweden developed devices including BlackBerry 10 smartphones. The BlackBerry 10 was launched in 2013 but failed to gain traction against Apple Inc.'s iPhone and devices powered by Google Inc.'s Android operating system. BlackBerry still offers the BlackBerry 10, but doesn't need as many people to maintain the device as it did during development.

While BlackBerry has more recently launched a string of smartphones aimed at professionals, it is increasingly betting on new mobile software aimed at fostering worker productivity and device security to revive sales.

"As we continue executing our plan for BlackBerry's turnaround, we remain focused on driving efficiencies across our global workforce, including the potential closure of offices," the BlackBerry spokeswoman said. "Our intention is to reallocate resources in ways that will best enable us to capitalize on growth opportunities across all facets of our business."

Earlier this week, BlackBerry said it would acquire WatchDox Ltd. to boost its mobile security offerings. The deal gives the company a platform to expand its research and development operations into Israel, a center for the development of security technologies.

Write to Ben Dummett at [e-mail]

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