Wall Street Journal report says Blackberry will lay off 40% of employees

Blackberry’s stock fell about 5% on Wednesday after the Wall Street Journal reported that the company will cut 40% of the workforce. The report says the layoffs “will cut across all departments and will occur in waves.”

Blackberry spokeswoman Lisette Kwong said the company “cannot comment on rumors and speculation,” but that “we are in the second phase of our transformation plan.” This includes making sure that the company has “the right people in the right roles,” she added.

Blackberry has been struggling recently, so layoffs would not be a complete surprise. The company has look for “strategic alternatives” for survival, and has even considered selling.

One of the reasons for the company’s decline is that while it was had the go-to phone for corporate markets, more and more companies are letting workers use iPhones and other smartphones.