BlackBerry to split into two public companies, spinning off IoT business

After months of reviewing its portfolio of businesses, BlackBerry has decided to split itself into two public companies.

In a news release on Oct. 4, the company announced that it plans to spin off its Internet of Things (IoT) business.

“The Board and management believe that separating our principal businesses will improve our ability to create value for all our stakeholders,” CEO John Chen said in the release.

“Both the IoT and [cybersecurity] businesses have leading technology and talent and address large and growing market opportunities. This new proposed structure will further increase both their operational agility and ability to focus on delivering exceptional solutions to their customers.”

The announcement comes after reports claimed that private equity firm Veritas Capital had sent BlackBerry a takeover offer.

According to The Globe and Mail, the split is expected to take place in the first half of the company’s next fiscal year, which begins on March 1.

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Splitting as major tech layoffs continue

BlackBerry’s decision to split into two public companies comes amid a flurry of tech sector layoffs in 2023.

Big names, including Epic Games, Google, Roku, Dell, Telus, Amazon, Microsoft, Ritual, and Meta, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Termination agreements for BlackBerry employees

Some BlackBerry employees could lose their jobs as the company splits its IoT and cybersecurity businesses into two separate entities.

In Canada, non-unionized workers at the tech giant are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many non-unionized employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance for provincially regulated employees
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• Pocket Employment Lawyer: Know your rights

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.