Blackberry announced on Friday that it would cut 4,500 jobs, or 40% of its worldwide workforce.
It also said it anticipated a loss of as much as $995m (£621.1m) when it reports its second-quarter earnings next week.
Shares plummeted 20% after briefly being halted following the announcement.
In August, the troubled smartphone maker said it was evaluating a possible sale of the company.
“The company has sailed off a cliff. What do you expect when you announce you’re up for sale?” said BGC technology analyst Colin Gillis.
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“Who wants to commit to a platform that could possibly be shut down?”
The company has been seeking a path forward after its much-touted new phone and operating system failed to catch on.
This week, it released a new version of its handset, the Z30, which was praised by observers but was nonetheless overshadowed by Apple’s launch of its new smartphone products.