With a smaller marketshare and workforce since it’s peak in 2012, Waterloo’s BlackBerry announced on Wednesday it will stop making it’s own smartphones.
The tech giant, who once had 80 million users, will begin outsourcing the development of it’s signature hardware to partners.
According to CEO John Chen, the move allows for “a reduction in capital requirements and an enhancement on invested capital.”
Chen, appointed executive chairman of the board and interim CEO of BlackBerry Ltd in November 2013, has been trying to turn the fortunes of the once profitable technology company.
BlackBerry Limited, formerly known as Research In Motion Limited (RIM), has seen it’s user base steadily decline over the last 4 years, being eclipsed by a new generation of smartphones from the likes of Apple and Samsung.
The company under Chen is not in danger of going under at this point with $2.5 billion in cash and investments on its balance sheet.
However, the mobile phone maker reported that its latest quarterly sales fell about 30% from a year ago.