BlackBerry announced poor results on Friday and said that it would be laying off 4,500 employees.
The company's stock closed down 16 per cent, or $1.74, to $9.08 on the Toronto Stock Exchange.
BlackBerry says job cuts will help it halve its operating costs by June 1, 2014.
It expects to post a loss of US$950 million to $995 million when it reports its second-quarter earnings next Friday.
There were reports earlier this week that the struggling cellphone company was ready to slash 40 per cent of its workforce by the end of the year. The announced layoffs amount to roughly that percentage of BlackBerry's staff.
"We are implementing the difficult, but necessary operational changes announced today to address our position in a maturing and more competitive industry, and to drive the company toward profitability," CEO Thorsten Heins said in a press release.
Reuters reporter David Ljunggren tweeted Friday afternoon saying Industry Minister James Moore was concerned by news of the job losses.
Several analysts weighed in on the news, with many saying the company is facing impending doom.
“The company has sailed off a cliff. What do you expect when you announce you’re up for sale. Who wants to commit to a platform that could possibly be shut down?" Colin Gillis of BGC Partners told Reuters
“They have to do something. To me the fact that they are exploring a sale is the only real alternative at this point. I think in the meantime, the fact that they are cutting operating expenditures deep is the best they can do to try and stabilize this ship," said Amitabh Passi, an anaylst with UBS.
The company recently announced a "strategic review" that would mean selling the company off, in whole or in parts.
BlackBerry also announced that the company was releasing a BlackBerry Messenger (BBM) client for iOS and Android this weekend.
BBM was one of the unique selling points of the once-dominant smartphone.
BlackBerry, formerly known as Research In Motion, was one of the first smartphone makers and was a technology darling for most of the early 2000s. The Waterloo, Ont. company has since been leapfrogged in popularity and sales by companies such as Apple, Samsung and Google in the competitive smartphone marketplace.
With files from The Canadian Press
Like this article? Follow our Facebook page
Or follow us on Twitter
Alicia Keys Is BlackBerry's Mercenary
At the BlackBerry 10 launch event, CEO Thorsten Heins introduced singer Alicia Keys as the company's new global creative director. Sure, Keys is a familiar and likable face to hawk your product -- but how has writing "Girl On Fire" prepared her for a creative director role? Adding to the awkward is that she's a <a href="http://gizmodo.com/5980200/blackberry-spokesperson-alicia-keys-tweets-from-her-iphone">prolific Twitter user from her iPhone</a> and Instagram's quite a bit, a program which isn't available on BlackBerry's new operating system yet. She claimed at the event that she'd been lured back into the BlackBerry fold by the new phones.
A Gimmicky Hair Cut, Less Cracking On CrackBerry.com
Kevin Michaluk, owner of the premier BlackBerry fansite and blog "CrackBerry" had promised to not cut his hair until the release of BlackBerry 10. Considering there were a <a href="http://www.sfgate.com/business/technology/article/A-look-at-RIM-s-much-delayed-BlackBerry-10-4236058.php">few delays along the way</a>, Michaluk had a nice batch of lettuce going. Though a nice gesture of his dedication, the reaction in house was timid. <a href="http://www.alexa.com/siteinfo/crackberry.com">Pageviews for Crackberry.com</a> have seen a steady dip.
Viral Marketing Fail
In an effort to build hype for the announcement of BlackBerry's new operating system and phones, the company released <a href="http://www.youtube.com/watch?feature=player_embedded&v=MiSzaWxRUSk" target="_hplink">this video</a> one day before the launch. The video involved a cable controlled jump with Alec Saunders, BlackBerry's VP of developer relations, and BlackBerry exec Marty Mallick. During the jump Mallick lets out a barely enthusiastic "BlackBerry 10 ruleeesssss!" The video only had 6,000 views prior to the launch event.
RIM Is Now.. BlackBerry! But Who Cares?
During the BlackBerry 10 launch event, it was revealed that Research In Motion or RIM, BlackBerry's creator, would be <a href="http://www.huffingtonpost.com/2013/01/30/rim-changing-name-to-blackberry_n_2581969.html?utm_hp_ref=technology">changing its name</a> to...BlackBerry. More than anything this seems to signal that the BlackBerry is all or nothing for what was formerly RIM -- they have nothing to fall back on.
Many Twitter users were quick to point out <a href="https://twitter.com/search?q=blackberry%20palm&src=typd">the launch of BlackBerry 10 to another doomed launch</a>, that of the the Palm Pre for Palm. The company announced the new phone and OS in January 2009, only to be <a href="http://money.cnn.com/2010/04/28/technology/hp_palm/index.htm">scooped up by Hewlett Packard in April 2010</a>.