Ailing smartphone maker BlackBerry is reportedly preparing to cut up to 40 per cent of its staff before the end of the year, as it looks to manage its costs in the face of shrinking sales.

According to the Wall Street Journal, while the company declined to comment on the headline figure, it did state that “organisational moves will continue to occur” as its business transformation continues.

Earlier this month, it was reported that BlackBerry had made significant cuts among its sales teams, which can hardly be a good omen for a company looking to grow its operations.

The WSJ said that the latest cuts will “come across all departments and occur in waves”.

BlackBerry is set to provide an update on its progress on its quarterly results call next week, although the omens are not good – job cuts and reports of lacklustre device sales meaning it is hardly likely to impress.

The company is in the midst of a strategic review which may see it broken up, following claims that it has only seen “tepid” interest from potential buyers.

While assets such as its platform, patents, and social networking properties (BBM) are believed to have some appeal, the core smartphone business is seen as the fly in the ointment – it is underperforming and with volumes dropping, no longer offers the benefits of scale.

Yesterday, BlackBerry unveiled its latest BlackBerry 10 device, the larger-screen BlackBerry Z30.