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.

Subscribe here for up-to-date channel news

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuesCitrix Systemslayoffsfinancial resultsrestructuring

Featured

Slideshows

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

Tight lines as Hooked on Lenovo catches up at Great Barrier Island

​Ingram Micro’s Hooked on Lenovo incentive programme recently rewarded 28 of New Zealand's top performing resellers with a full-on fishing trip at Great Barrier Island for the third year​ in a row.

Tight lines as Hooked on Lenovo catches up at Great Barrier Island
Inside the AWS Summit in Sydney

Inside the AWS Summit in Sydney

As the dust settles on the 2017 AWS Summit in Sydney, ARN looks back an action packed two-day event, covering global keynote presentations, 80 breakout sessions on the latest technology solutions, and channel focused tracks involving local cloud stories and insights.

Inside the AWS Summit in Sydney
Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day

Ingram Micro hosted its third annual Cure Kids Charity Golf Tournament at the North Shore Golf Club in Auckland. In total, 131 resellers, vendors and Ingram Micro suppliers enjoyed a round of golf consisting of challenges on each of the 18 sponsored holes, with Team Philips taking out the top honours.

Channel tees off on the North Shore as Ingram Micro hosts annual Cure Kids Charity golf day
Show Comments