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.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesfinancial resultsrestructuringlayoffsCitrix Systems

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Katherine Noyes

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?