This buyout is bad news for us. Really bad news. Look at some of the other companies where Elliott became part or majority owner. The first thing that's done is cost cutting (or let me translate that: laying off anybody and everybody they think they can lose). The same thing is going to happen here. Elliott always wants to get more with less. There'll be no winners. Some will be laid off, others will have to pick up their work. In any case, employees will lose.
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After reading about Elliot and co. coming to town I popped in here to offer some advice to any US-based Citrix employees: RUN. I've seen Elliot's playbook in action first hand and it's layoffs and offshoring all day long. You might hear it played off initially as increasing capability overseas, but mark my words that layoffs will follow if you're in a high cost labor market like the US. They'll squeeze and squeeze to get costs as low as possible before making their exit. The long-term prospects for the company are a secondary concern.
Love this!!!
“ Whenever an executive spends the first 14 minutes telling you how wonderful something is going to be for you, it isn't...”
I wish my positive mindset got slapped in the face years ago. Our new CIO introduced the “strategic sourcing” initiative. Same they spent many minutes telling us how wonderful it was going to be.
They spent the next 4 months positively leading us to believe they were going to augment the staff to remove all the busy work so we could focus on strategic IT things that helped drive business. I was derpy derp positive guy the whole time.
100 IT jobs eliminated plus me and trained their overseas replacements. Phase1
Phase 2 another 100 IT jobs eliminated and trained their overseas replacements.
Phase 3 all layers of IT management and adjacent teams eliminated.
Oh you mean that kind of staff augmentation……
The cuts will be much more severe for the workers in the US. Even if they cut only 20% or 30% most of these will come from the highest payed employees.
The first thing that will happen after the take over is cuts. Anyone that says otherwise is full of sh!t. Packages are likely going to get cut significantly... just look at what Elliot has done to the other companies. Once they cut to the bone, they will start to invest but it will be challenging for the first year or two.
Not sure who Posts here but i doubt some of them are not related to Citrix as what they say is clearly not adjuted to reality. On the other side, this is the result of years and years of bad management, bad decisions… how long it took for the “board” to realize this was a failing model that is was not going to be fixed witj restructurations ever 2 years?
Whenever an executive spends the first 14 minutes telling you how wonderful something is going to be for you, it isn't...
This, on the surface, seems like a potentially good exit for Citrix remaining employees. Many have wanted the executive leadership team removed, and now this will likely happen as TIBCO leadership assumes control of the assets they decide to keep (clearly, to be determined). Citrix HR, Finance, and other duplicate corporate functions will be hardest hit by the upcoming layoffs as TIBCO takes control. Again, this appears to be a new beginning that could result in a positive turn-around for Citrix employees and other stakeholders.
The cuts will be more like 20-30%. Deeper in back-office, marketing, all of the fluff that Citrix has been paying for, and the useless groups like the Office of Transformation. Basically much of Mark Schmitz's org, although he himself may survive as a Calderoni buddy. Tim's CMO role- gone- he's been a complete dud. Product Management- PJ already gone, should have happened in 2019. Shridhar- will be gone-he's the real cause of the product demise- the leader of Workspace that is not selling. Such value destruction!
Look for major cleaving now- split Wrike, split Netscaler etc. All of this could have been done as a public company to generate shareholder value. But the ELT was incapable of doing it. So PE comes in and will make bundles.
Core sales will stay- the PE wants revenue.
Still reading this and thinking you are OK staying onboard? You are not. Go watch Get Out. Your are toast and you don't know it.
i wonder what this will do to cas. dont cas and tibco do a lot of the same stuff??
60 - 80% is too much. It will start conservative 20 - 30%. Some of the functions previously unscathed will take huge cuts - especially back office like finance, rev. rec., facilities, marketing etc. I think professional services will also see further cuts - especially non customer facing. Depending on the strategy, it is likely that sales may also experience deep cuts - perhaps not so much renewals and key accounts, but a gutting of the middle. Can’t speak too much about the state of bloat in the engineering teams - but I doubt much of the product management org will see it through. I am interested to hear opinions on the game plan from rolling Citrix tech. in with TIBCO.
Will they at least give severance or there's no hope of that with Elliot involved?
80% of people will be cut, first big chunk will be at least 60-70%