Blackberry attempts to build customer confidence through open letter

The struggling Canadian smartphone maker's latest move comes in the wake of recent job cuts and take-over bid.

New Statesman
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Blackberry is set to urge its customers, distributors and partners through news paper advertisements to have trust in its future and products as it is moving through challenging times.

The company’s open letter said: “These are no doubt challenging times for us and we don't underestimate the situation or ignore the challenges. We are making the difficult changes necessary to strengthen BlackBerry.”

Frank Boulben, chief marketing officer of BlackBerry, was quoted by Bloomberg as saying that the advertisements will appear in 30 publications in nine countries, including the Wall Street Journal and the Washington Post.

In addition, the company will reveal that it still has a strong balance sheet, substantial cash in hand and is debt free, in the letter.

The firm failed to compete with rivals like Apple and Samsung in generating profits as its new models like Z10 smartphone didn’t encourage customers.

The struggling company’s latest move comes in the wake of recent job cuts and take-over bid. For the second-quarter of 2013, the company posted a net loss of $965m (£600m).

In September, Blackberry said it was planning to cut 4,500 jobs, or 40% of its global workforce, as part of plans to reduce operating expenditures by 50 per cent by the end of the first quarter of fiscal 2015.

A consortium led by Fairfax Financial Holdings signed a letter of intent agreement (LoI) in the same month to acquire outstanding shares of the Canadian smartphone giant BlackBerry for $4.7bn (£3bn). Fairfax currently owns about 10 per cent of common shares in BlackBerry.