OpenText sees 1.7% reduction of company’s workforce from optimization plan

In a regulatory filing, Open Text disclosed that the company announced a business optimization plan. The plan is expected to result in the reduction of approximately 1,200 positions across the company, with an annualized cost savings of approximately $200M, as well as the reinvestment of approximately $50M annually for approximately 800 new roles in Sales, Professional Services and Engineering. “The business optimization plan is intended to strategically align the Company’s workforce to support its growth and innovation plans. On an overall basis, the business optimization plan is expected to result in a 1.7% reduction of the Company’s workforce, to approximately 23,000 employees. The Company expects to complete the business optimization plan substantially during the first quarter of its fiscal year 2025. The Company expects to incur approximately $60 million in restructuring charges that will be substantially recognized in the first quarter of Fiscal 2025, with the majority of such charges anticipated to be paid in cash during the same quarter. The Company expects the business optimization plan, when fully implemented, will result in net savings of approximately $150 million in Fiscal 2025. The Company will provide additional details of the business optimization plan as part of its fourth quarter and 2024 fiscal year end results,” the filing stated.