I spent nearly 20 years as a senior engineer at OpenText before leaving late last year to join a true tech company in Silicon Valley. I still keep in touch with many colleagues there, and over drinks with a group of OpenText leaders last weekend, I learned some troubling details.
The layoffs that have occurred so far in 2025 were described to me as isolated cases, not part of a formal program. However, a major workforce reduction is expected in three to four weeks. I was told the plan is to execute quickly to limit ongoing anxiety, but the scale will be very significant. No one seems to have total numbers, but most believe it will be between 1000-2000. This round is expected to disproportionately impact U.S.-based employees, particularly in engineering and technical support roles, as management looks to shift functions to lower-cost regions like Canada and India.
Internally, this will be branded under the "Better Together" initiative, with messaging around strengthening OpenText's global Centres of Excellence. But those I spoke with, including individuals in senior roles, were clear: this is a cost-cutting exercise. The company is reportedly far behind on its organic growth targets and sees workforce reduction as the only viable path to maintain financial optics.
Unfortunately, history suggests that many high-performing, dedicated employees will be caught in this sweep—once again, sacrificed in a bid to reassure investors. Those familiar with the plan doubt it will impact FY25 profitability (which closes June 30, 2025). Instead, it's likely to inflict long-term damage while putting talented professionals into a difficult job market.
No specifics around severance have been shared, and the process appears highly confidential. Only a small group of leaders, even at the VP level, seem aware of the details. This round is being handled with more secrecy than prior layoffs.
This could affect you if you're a U.S.-based engineer or technical support professional. Your role may be at risk if you're based in a region where OpenText isn't planning growth. European teams may be impacted later, pending Works Council approvals.
Having spent two decades at OpenText and now working in an environment that truly values innovation, I can say this: that the company's current outsourcing strategy (to move well-paying onshore jobs to low-cost India) is problematic. Engineering talent is being replaced with lower-cost offshore resources focused primarily on execution, not innovation. This shift has already degraded product quality, and OpenText may struggle to adapt as generative AI reshapes development. The company risks falling even further behind without experienced architects and engineers to lead AI-driven transformation.
This is a case of short-term thinking at the expense of long-term capability. As a former long-time employee and shareholder, I find it frustrating to see value erode and morale drop with little confidence in a turnaround.
It's hard to understand why the board isn't stepping in. From my perspective, and from what I continue to hear from former colleagues, Mark has underperformed and should be held accountable. Muhi, while once a respected leader, appears to be staying on primarily out of loyalty to Mark. I've always had respect for Muhi, but at this stage, it's clear he should consider stepping aside and making space for new leadership.
As for Savinay, I worked with him during his prior tenure and can say with confidence that his leadership was deeply problematic. His return has raised serious concerns among many within the company.
Sales leadership under Todd has not, from what I can observe publicly or hear internally, produced any meaningful improvements in performance. The Professional Services team continues to operate in silos, delivering one-off, poorly integrated customer solutions that ignore core engineering and IT standards. This lack of discipline in services delivery undermines both customer satisfaction and long-term scalability.
That said, there is some optimism around the CTO, Shannon, who joined shortly before I left, roughly 10 or 11 months ago. I've heard consistently positive feedback about her leadership. She seems to be introducing thoughtful changes and challenging outdated practices, which is encouraging.
Overall, OpenText needs a significant leadership reset. The company requires a new CEO with a vision rooted in innovation and operational discipline. It needs a true engineering leader, someone who understands modern software architecture, AI, and how to build world-class platforms. A proven sales executive is also needed—one capable of revitalizing the go-to-market strategy. The Professional Services function demands a leader who respects process, knows how to run a profitable P&L, and is selected based on experience and capability, not personal alignment with existing executives.
In addition, Sandy Ono, the ELT member responsible for communications and marketing, must be held accountable for impact. Has she improved OpenText's visibility in the industry? Are more people aware of the company? Has sentiment improved around the OpenText brand or its acquisitions like Hightail, Carbonite, Webroot, or Zix? The honest answer from most is no. Her primary focus appears to be organizing events that serve to elevate Mark's profile rather than advancing strategic communications. Those willing to speak candidly will tell you her tenure has been ineffective, and it is time for new leadership in that function as well.
The company is at a critical juncture. Without bold action and new leadership, it's difficult to see a path forward.