BlackBerry appoints John Giamatteo as CEO, puts IoT spinoff plans on hold

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    11th December 2023 – (Ottawa) Canada’s technology company, BlackBerry, announced on Monday that it has named John Giamatteo, the head of its cybersecurity unit, as its new chief executive officer. Additionally, the company has decided to shelve its plan to spin off its Internet of Things (IoT) business.

    In October, after carefully considering strategic options, BlackBerry had revealed its intention to separate its IoT and cybersecurity divisions, with the aim of pursuing an initial public offering for the IoT subsidiary in the coming fiscal year.

    However, BlackBerry has now revised its decision and will only proceed with the separation of the two businesses after conducting a reassessment.

    This change in plans comes amidst the underwhelming performance of recently listed companies such as Birkenstock, chip designer Arm Holdings, and grocery delivery app Instacart/Maplebear.

    Furthermore, BlackBerry will streamline its centralised corporate functions to enable each business unit to operate independently, focusing on achieving profitability and positive cash flow.

    John Giamatteo, who assumed the role of president in BlackBerry’s cybersecurity business in October 2021, will step into his new position as CEO with immediate effect. He succeeds John Chen, who served as CEO for a decade and recently stepped down in November.

    During the interim period following Chen’s departure, Richard Lynch, a director on BlackBerry’s board, assumed the role of interim CEO.

    In early trading, BlackBerry’s U.S.-listed and Toronto shares remained unchanged.