Job cuts start as Citrix moves to cloud business
Citrix Systems now has a restructuring program to support its previously announced transformation to a cloud-based subscription business. The program includes cutting full-time positions and consolidating existing facilities. The company has more than 8,000 workers worldwide. It has already started laying off staff in the US, and the cuts are expected to hit most functions, although the indication is of a shift from SMB to enterprise-scale products, with the closure of some product lines
Citrix expects to record between $60m to $100m in pre-tax restructuring charges with $55m to $70m in pre-tax charges related to employee severance and $5m to $30m for facility consolidation.
Citrix anticipates completing most of the restructuring activities during Q4 and during FY18. Citrix has sold off assets in recent years, and the entire company was rumoured to be for sale at certain points in 2016 and 2017. In mid-2017 it replaced its CEO for the fourth time since 2015.