Cybersecurity, AI, and IT management outfit OpenText plans to lay off 1,200 employees and add 800 positions as part of a “business optimisation plan” to support its “growth and innovation plans.”
The business optimisation plan aims to strategically align the company’s workforce, resulting in a 1.7 per cent reduction to approximately 23,000 employees.
The plan is also expected to save about $200 million annually.
At the same time, the company is reinvesting around $50 million annually for 800 new jobs in sales, professional services, and engineering.
The company said in a statement that the “Business Optimisation Plan focuses on placing the right roles in global locations most appropriate for the business.”
The Ontario, Canada-based company expects to complete the plan during the first quarter of its Fiscal Year 2025, which began on July 1.
OpenText said it will incur about $60 million in restructuring charges that will be “substantially recognised” in the first quarter of Fiscal Year 2025. According to the filing, most of the charges are expected to be paid in cash during the same quarter.
When fully implemented, the software company expects the plan to result in net savings of about $150 million in Fiscal Year 2025 and plans to provide additional details as part of its fourth-quarter and 2024 fiscal year-end results.
In the most recent quarter ended March 31, OpenText reported GAAP-based diluted earnings per share of 36 cents, up from 21 cents per share in the same quarter last year, on a 16 per cent increase in sales to $1.44 billion.
