Thread regarding Citrix Systems Inc. layoffs

Wrike is an outlier and has some good upside based on their addressable market. This is a growth segment and does not belong with the legacy product set (DaaS, NetScaler). The difference here is that it is a needed product and being free of the Citrix management bureaucrats will allow them to grow and proper.

I have yet to see anyone be able to articulate where the synergies are between Citrix and TIBCO. TIBCO is focused on some exciting growth areas with analytics and AI/ML whereas Citrix, no matter how many times they try to reinvent themselves, still delivers a solution to enable legacy software with virtual apps and desktops. Someone much smarter than I must have a plan somewhere and to me, this just has the makings of a very interesting case study of a failed integration for the next generation of b-school students.

Most companies are trying to phase Citrix out rather than adopt new deployments. It is a fight to retain their install base. Whenever a customer realizes there is a better and more efficient way to remove the dependency on the Microsoft and Citrix tax for their apps, they are jumping on it. Who needs a highly complex Windows app when apps are constantly being modernized to SaaS, which makes this entire overly complex technology stack obsolete?

No surprise that they will shed many unnecessary layers here as the company is extremely bloated. Lots of incredibly smart and capable people here that will no doubt be able to land something better with a company focused on innovation rather than trying to be relevant.

@2wte+1iEY470n

The NetScaler security pieces that DaaS depended on have been separated into the Citrix Gateway Service for a while. The other load balancing usage of NetScaler did not really have much of anything that was special. In fact, more customers used F5 than NetScaler. And all of that is gone in the new world where the desktops are running on Azure, handled by Azure built-in load balancers. So the Netscaler usage is mostly in legacy customers, not forward looking.

Any for any remaining usage, the customers can continue to buy from the split up company. Or the Citrix company can "resell" or work through some temporary arrangement. Not a big deal or reason the keep them together.

The main focus for NetScaler needs to be around app sec for workloads, especially micro-services. That is completely different than what DaaS is doing.

Elliott and Vista see all of this (you will be surprised how much they have gone through the tech and how much they know). That's why they created the two "divisions" to make the sale easier. Whether they are viable entities with the right leaders to take them forward is another story. Any buyer's first move will be to bring competent leadership to bring back growth to these product areas.

@1ogf+1iEY470n, how can NetScaler be separated and sold when there is so much integration and reliance on it as part of the total Daas solution? The ADC cloud offerings are also aligning with Daas as well as the Security offerings. Software and Networking share many same customer accounts with integrated account teams and support. Not seeing how it would all work then.

Bulls make money, bears make money, pigs get slaughtered

The Wrike move was obvious all along- no surprise there. The big reductions will come on the Citrix side, in preparation for the separation of the company one more time into Citrix and NetScaler.

I would expect hits R&D in Florida, Raleigh as they are areas less touched compared to Santa Clara which has been fairly efficient with the Bangalore team. Sales, marketing and at least one layer of management will be cut globally. The Schmitz regime brought so many COO's, Chiefs of staff and others that talked but did not add value that there will be trimming world-wide in those ranks as well.

So expect more around 1200 people to be cut or impacted, with some backfills in Bangalore, to reduce opex by about $300M only on the Citrix side (that 10% operating margin expansion after the dust settles). The $371M is likely targeted to be > $400M as PE's don't like to miss their mark.

And yes, if you are still moaning about working from home, the next few weeks will determine how much runway you have.

Those two are good cash cows, but with little to show for a growth story after years of stagnation and market change. So, they will need to be re-homed into large software conglomerates that can milk the last drop out of customers who are unable or unwilling to move off Citrix or NetScaler.

Numbers don't matter much. 955 vs. 2K or 10K.
You are a number. That's what bloomberg counts. Numbers.

TK will cut more than 1K. His agenda is clear. He wants to cut the most and pay the least. He will make folks leave “voluntarily” first. If you decide to carve in and RTO 5 days a week, then he will cut whatever the number he needs before the holiday season. This is simple and clear. If you have mortgage or rent payment, I would advise you to start interviewing and connecting with your former colleague s who left few months ago. It never hurts to have an back up plan.

PE strives to be as lean as possible. Cuts will be in the thousands.

It will be partially staggered with the people working through the transition and notice periods in Europe.

Assume for everyone 5 people today they only need one

I don’t know what Tibco and Citrix employee counts are currently, but I would think it hovers in the 4k and 8k range respectively. If there’s going to be any significant cost reduction, TK has to cut 1k off that total, at least.

Tibco got hit the week before Labor Day — pretty sure it was all, or almost all, from Marketing and HR. Maybe someone from Tibco can substantiate it and approximate totals.

I fully expect a bloodbath shortly after October 1st.