Company transitioning to new business focus
OpenText is laying off about 1,200 workers as it transitions to a new business focus.
Meanwhile, the company will reinvest in 800 new roles in sales, PS, and engineering to support its growth and innovation plans.
“Combined, this is expected to reduce our annual expense by $150 million with the cost of the reduction approximately $60 million,” said Mark J. Barrenechea, OpenText president and CEO.
Overall, the business optimization plan will result in a 1.7% reduction of the company’s workforce, to about 23,000 employees, according to Channel Futures.
TikTok, Indeed, Tesla, Citigroup have also previously announced layoff plans for this year.
3-year strategic plan for OpenText
The development at OpenText is part of the company’s launch of OpenText 3.0 – Information Reimagined, the company’s three-year strategic plan that looks to bank on the powers of Cloud, security and artificial intelligence (AI).
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“We are very excited about opportunities going forward to continue our growth and increase our market share by helping our customers transform,” said Barrenechea. “Along with our plans to pursue large margin expansion opportunities and execute on strong capital allocation, we are confident we will deliver significant long-term value for all our stakeholders.”
Two-thirds of graduates across the world are concerned that artificial intelligence or automation will make it more difficult to secure jobs, according to a previous report.
