OpenText plans to lay off 1,200 employees and create 800 jobs

OpenText plans to lay off 1,200 employees and create 800 jobs
OpenText plans to lay off 1,200 employees and create 800 jobs

Ahead of its 2025 fiscal year, Canadian publisher OpenText is getting its operations in order. In a regulatory filing with the SEC, the company announced an optimization plan that “aims to strategically align the Company’s workforce to support its growth and innovation plans”. For CEO Mark Barrenechea, it’s about “putting talent in the right place” but also to optimize costs, margins and productivity.

The plan calls for 1,200 layoffs, or 1.7% of its total workforce of 23,000. The company will incur restructuring costs of about $60 million and expects net savings of about $150 million in fiscal 2025. It did not disclose which departments or teams would be affected by the cuts. OpenText plans to create 800 positions in sales, professional services and engineering.

This “alignment” is part of a three-year strategic plan called “OpenText 3.0 – Information Reimagined”. After a decade focused on content management and the next on information management in the cloud, OpenText wants to focus on innovations in cloud computing, security and artificial intelligence in the next.

OpenText said more details about the plan will be released when it reports its fiscal fourth-quarter results in August. The company reported a strong third-quarter result. It posted revenue of $1.4 billion, up 16 percent from a year earlier, and profit of $98.2 million, up from $57.6 million a year earlier.

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