If the layoffs are over for now, does anybody know the total number of casualties? It seems an entire BU in Engineering was eradicated. There will be nothing left to divest.
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The House of Cards is already falling, the next few weeks before Ayman's April 20th start date are going to be a pre-game for the June storm.
They bet that OpenText’s enterprise software is too "sticky" for customers to leave quickly. They believe customers will tolerate bad, bot-only support for 2–3 years because the cost of migrating to a competitor is too high.
By cutting 20% of the workforce (mostly middle managers and support) and automating post sale customer interactions, OpenText can theoretically push EBITDA margins from the current ~35% into the 50% or 60% range almost overnight.
Once the margins are inflated by these cuts, a PE firm could purchase OpenText and flip the company to a strategic buyer who thinks they are getting a clean, highly profitable, automated machine.
@xj Man, are you guys in denial ? They have said they will sell non core until OpenText is profitable again. There will be layoffs to make the non core more attractive and also to pay the debts. If you have worked at OpenText for more than a year, you know layoff is a usual occurrence. The only growth OpenText can achieve is via acquisition but money is no longer cheap. Only hope is for your division to be sold to a company that is not like OpenText.
@xj it could be someone trying to minimize concern. Because if you're focused on that it's less productivity for OT.
While it's all speculation until it happens, other rumors are contradicting. And unless you're in a couple of departments we sure aren't growing yet.
@ve I've heard the same, no layoffs for rest of 2026. We are adopting a growth mindset and we need people to help us grow
@v2 post that again next month after you are let go.
@tz there are no layoffs the rest of this calendar year
What areas are going to get hit in July?
OpenText is where technology goes to die. They should open a museum at the University of Waterloo.
@hn It’s a classic case of what happens when a software harvester buys a software builder. The harvester only cares about the yield, even if they have to salt the earth to get it.
When we took over, we didn't just cut fat rather we severed the connective tissue of the MF and SMB Cybersecurity units to fund the pivot to Agentic AI.
Hope is our strategy.
@hd OT gutted MF Cyber in 2024. As always, OT knew best.
Once the quislings took over, Cyber has run on hopes and wishes ever since.
@c7 Leaders in Cyber Ent actually know what they are doing and it could succeed if the company understood Cyber. I know one of those leaders has left already or was perhaps asked to.
Where did Magellan go?
I’m in IT
Just under 1000. More coming around July
Approx. 1,600 across all of OT. I don't know the split.
@ag Wow! Cyber Ent really needs to be put out of its misery or given away.
It’s been a not very funny clown show for the last two years at least.
@ag It was a non core BU
Which BU was eradicated? I know cybersecurity enterprise was hit pretty hard. So much for being core.
My manager said 800 across the entire org