Menu
Citrix's 900 job cuts seen as 'defensive' move

Citrix's 900 job cuts seen as 'defensive' move

It expects to save $US90 million to $US100 million per year as a result.

Citrix Systems announced better than expected financial results for the last quarter but also a restructuring plan that will see 900 jobs being cut.

The restructuring, which includes the elimination of 700 full-time and 200 contractor positions, is expected to deliver savings of $US90 million to $US100 million per year, Citrix said.

Investors seemed to cheer the news, as Citrix's stock rose as high as $63.27 per share on Thursday, or 7 per cent over the previous day's close.

"I think Citrix's plans qualify as what might be called defensive layoffs," said Charles King, principal analyst with Pund-IT.

The results beat analyst expectations, "but only barely," King noted.

Recent economic trends - including lower oil prices and a strengthening dollar - have caused a number of vendors to make cautionary statements about business performance, particularly for the latter half of the year, he said.

"Though painful, the Citrix headcount reductions are relatively modest and should provide the company some leeway if or when things get tough later on," King added.

Citrix's revenue for the fourth quarter of fiscal 2014 was $US851 million, up 6 per cent year-over-year. For the full year, revenue was $US3.14 billion, up 8 per cent from 2013.

For 2015, Citrix expects revenue between $US3.29 billion and $US3.33 billion, and earnings per share of $US3.60 to $US3.65. Analyst polled by Thomson Financial had predicted earnings of $US3.69 a share on $US3.36 billion in revenue for the year.

The layoffs will cost Citrix up to $45 million in severance this year and up to $10 million related to the consolidation of leased facilities, the company said.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesCitrix Systemslayoffsfinancial resultsrestructuring

Slideshows

Top 50 defining moments of the New Zealand channel in 2016

Top 50 defining moments of the New Zealand channel in 2016

Reseller News looks back on a tumultuous 12 months for the New Zealand channel, assessing the fallout from a year of sizeable industry change. Whether it be local or global mergers and acquisitions, distribution deals or job changes, the channel that started the year differs somewhat to the one set to finish it - Reseller News assesses the key moments that made 2016.​

Top 50 defining moments of the New Zealand channel in 2016
​Hewlett Packard Enterprise honours high achieving NZ channel

​Hewlett Packard Enterprise honours high achieving NZ channel

Hewlett Packard Enterprise honoured its top performing Kiwi partners at the second running of its HPE Partner Awards in New Zealand, held at a glitzy ceremony in Auckland. Recognising excellence across eight categories - from distributors to resellers - the tech giant celebrated its first year as a standalone company, following its official split from HP in 2015.

​Hewlett Packard Enterprise honours high achieving NZ channel
Nutanix treats channel partners to Christmas cruise

Nutanix treats channel partners to Christmas cruise

Nutanix recently took to the seas for a Christmas Cruise around Sydney Harbour with its Australia and New Zealand staff, customers and partners to celebrate a stellar year for the vendor. With the sun out, they were all smiles and mingled over drinks and food.

Nutanix treats channel partners to Christmas cruise
Show Comments