Menu
Citrix spinning off GoTo collaboration business, laying off 1,000 people

Citrix spinning off GoTo collaboration business, laying off 1,000 people

The company will focus on the secure delivery of apps and data

Citrix Systems has decided to spin off its GoTo collaboration products business into a new company, to focus on its core business in the secure delivery of apps and data.

The mobile workspaces company expects to completely separate the GoTo business, consisting of products like GoToMeeting, GoToAssist, GoToWebinar, OpenVoice, Grasshopper and GoToMyPC, into a separate publicly traded company by the second half of next year.

For the trailing twelve months ended Sept. 30, unaudited revenue from the GoTo products and services was about US$600 million.

The initial results of Citrix's operations review, which were announced Tuesday, also involves a "realignment of resources" that is expected to eliminate about 1,000 full-time and contract roles, over and above the effect of spinning off the GoTo business. Most of the layoffs and refocusing of resources are expected in November and in January 2016.

The review follows an agreement in July with investment firm Elliott Management whose affiliated funds own about 7.5 percent of the company's common stock. Elliott is said to have asked the company to trim down its business, according to reports. The company's CEO and president, Mark Templeton, retired last month as part of a plan announced in July.

The company plans to now increase emphasis and focus its resources on core enterprise products for secure application and data delivery, including its XenApp, XenDesktop, XenMobile, ShareFile and NetScaler.

The separation of GoTo will create a pure-play SaaS (Software-as-a-Service) company that will have a targeted focus with the flexibility to invest in its portfolio of products, said Bob Calderoni, interim CEO and president and executive chairman of Citrix. The GoTo family of products is best suited to grow and operate as a standalone business, he said in a statement.

Citrix reported revenue of $813 million in the quarter ended Sept. 30 for a profit of $56 million. After an earlier restructuring starting February, the company cut 700 full-time positions in the first half of this year.

In January, Citrix acquired Sanbolic, a vendor of storage virtualization technologies, aiming to offer technologies that will reduce the complexity of Microsoft Windows application delivery and desktop virtualization deployments. It also acquired later Grasshopper Group, a cloud-based telephony technologies company targeting small businesses, whose product fitted in the GoTo collaboration business.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Brand Post

What to expect from your IT Distributor

Whether you’re just starting out or you’ve been around since before the dot com rollercoaster, choosing the right distribution partner can be a pivotal factor in your success. This definitive guide outlines the traits that every IT partner needs to look for in their IT Distributor.

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments