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

Featured

Slideshows

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Examining the changing job scene in the Kiwi channel

Examining the changing job scene in the Kiwi channel

Typically, the New Year brings new opportunities for personnel within the Kiwi channel. 2017 started no differently, with a host of appointments, departures and reshuffles across vendor, distributor and reseller businesses. As a result, the job scene across New Zealand has changed - here’s a run down of who is working where in the year ahead…

Examining the changing job scene in the Kiwi channel
​What are the top 10 tech trends for New Zealand in 2017?

​What are the top 10 tech trends for New Zealand in 2017?

Digital Transformation (DX) has been a critical topic for business over the last few years and IDC is now predicting a step change as DX reaches macroeconomic levels. By 2020 a DX economy will emerge and it will become the core of what New Zealand industries focus on. From the board level through to the C-Suite, Kiwi organisations must be prepared to think and act digital when the DX economy emerges in 2017.

​What are the top 10 tech trends for New Zealand in 2017?
Show Comments