BlackBerry (BB.TO), a Canadian company, said on Monday that it had chosen John Giamatteo, the director of its cybersecurity unit, for the position of chief executive officer. Additionally, the company scrapped its intention to spin off its Internet of Things (IoT) division.
The firm announced in October that it would split its Internet of Things (IoT) and cybersecurity divisions and seek an initial subsidiary public offering for the former during the next fiscal year. This decision came after the company had spent months analyzing various strategic options for its companies.
BlackBerry, on the other hand, announced on Monday that it will only split the two businesses after reevaluating the decision that was previously made.
The change in plans comes against the background of the poor performance of newly listed firms such as Birkenstock (BIRK.N), Arm Holdings (O9Ty.F), and Instacart/Maplebear (CART.O), which are all companies that deliver groceries to customers.
BlackBerry will also simplify its centralized corporate procedures to enable each business unit to operate autonomously while simultaneously generating positive cash flow and returns.
Giamatteo arrived at BlackBerry in October 2021 to take on the role of head of the company’s cybersecurity unit. His appointment is effective immediately.
John Chen, who had been in charge for ten years, gave up his position in November and is the new leader.
Immediately upon Chen’s retirement, Richard Lynch, a director on BlackBerry’s board, took over as temporary CEO.
During the early trading session, the company’s shares listed in the United States and Toronto remained unchanged.
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