Citrix announces some layoffs in Raleigh as part of company changes. What we know.
Citrix Systems, the software company whose technology helps enable remote work, is laying off about 50 workers at its Raleigh office, a spokeswoman for the company told The News & Observer.
The company said the layoffs would affect less than 10% of its Raleigh office and are part of a larger restructuring within the company, according to Citrix.
On Monday, Citrix told investors that it had begun terminating some full-time employees and consolidating facilities, after its board approved a plan to restructure how the company operated.
The restructuring effort stands to cost Citrix somewhere between $130 million to $240 million, of which up to $90 million could go to employee severance costs.
The company has previously told The N&O that its Raleigh office is home to around 700 employees.
The layoffs come two months after Elliot Management, a hedge fund known for shaking up companies, took a $1 billion stake in the company, The Wall Street Journal reported in September.
Citrix, whose software enables employees to virtually access their desktop computers, had seen its stock price decline this year, as it transitions into a new subscription model for its cloud computing services, Barron’s Magazine Reported.
Shares of Citrix fell 4.3% to $85.80 after the announcement of the layoffs on Monday morning.
Over the past year, the company’s stock price has fallen more than 27%.
Earlier this month, Citrix’s interim CEO Bob Calderoni told analysts that restructuring would help the company return to growth.
“We’re looking to remove distractions that not only depress margins, but distract us from growth,” he said during the company third quarter earnings call.
Calderoni hinted that the restructuring plan would focus on the company’s sales division.
“We’ve got too many instances where we have too many people getting compensated on the same deal,” he told analysts. “I don’t think that’s a good thing. I think that not only adds more cost, I think it also takes away sales capacity at the same time.”
This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. Learn more; go to bit.ly/newsinnovate
This story was originally published November 15, 2021 at 11:56 AM.
