BlackBerry will stop manufacturing its own smartphones and instead focus on software for its mobile devices.
The firm will outsource the manufacturing of its devices to other companies, while still branding them as BlackBerry devices.
It has already entered into a partnership with one of Indonesia's largest telecom companies to create smartphones for the market.
The move comes amid news that its revenues had dropped 31.8% in its second quarter with a net loss of $372 million.
BlackBerry's chief financial officer James Yersh is set to leave the company on October 1st for personal reasons. He will be replaced by former Sybase exec Steven Capelli.
"BlackBerry is no longer just about the smartphone, but the smart in the phone," said chief executive John Chen on the decision to move to software development.