OpenText Layoffs Hitting 1,200 Workers

New OpenText layoffs will impact about 1,200 workers as part of a new business optimization plan.

The Ontario, Canada-based information management and security company announced the upcoming layoffs in a filing with the U.S. Securities and Exchange Commission (SEC). It has more than 24,000 employees.

The OpenText layoffs will result in net savings of about $150 million in its fiscal 2025, which begins this month. However, the company does plan to create hundreds of new roles.

“The plan is expected to result in the reduction of approximately 1,200 positions across the company, with an annualized cost savings of approximately $200 million, as well as the reinvestment of approximately $50 million annually for approximately 800 new roles in sales, professional services and engineering," the company said. "The business optimization plan is intended to strategically align the company’s workforce to support its growth and innovation plans.”

On an overall basis, expect the business optimization plan to result in a 1.7% reduction of the company’s workforce, to about 23,000 employees.

Timeline of OpenText Layoffs

OpenText plans to complete the business optimization plan substantially during the first quarter of its fiscal year 2025. It expects to incur about $60 million in restructuring charges that will be recognized in the first quarter of fiscal 2025, with the majority of charges anticipated to be paid in cash during the same quarter. 

Related:Recent Tech Layoffs: 2024 Q1 Tracker

OpenText will provide additional details of the business optimization plan as part of its fourth quarter and 2024 fiscal year-end results, which it will announce in August.

Mark Barrenechea, OpenText’s CEO and CTO, also addressed the layoffs in a blog, in which he announced "OpenText 3.0 – Information Reimagined through the Power of Cloud, Security and AI," the company’s three-year strategic plan.

As part of OpenText 3.0, its quarterly “rhythm of innovations” will focus on three primary areas:

OpenText's Mark Barrenechea

“In further support of OpenText 3.0, today we announced a business optimization plan focused on placing the right talent in the right locations of our business, funding growth and innovations, and completing these objectives with higher productivity, lower cost and expanded margin,” said Barrenechea.

In January 2023, OpenText announced layoffs impacting 8% of its workforce with the closing of its $5.8 billion acquisition of British rival Micro Focus.

Zix, Carbonite and Webroot are three more of OpenText's acquisitions over the past few years.