Thread regarding Open Text Corp. layoffs

We can fool mom and dad but not c-level execs.

@15n AMC retained most employees from MF and OT. They seem to be having a great time at rocket, better pay and benefits probably.

What will happen to the BUs that get sold off? Will they lay everyone off and then sell? Or will you be imprisoned and laid off at the new company instead?

So does this mean we are still moving forward with how to save $1B, OT trusts OT campaign if BUs will be sold off?

"We did sell a mainframe unit several years ago that had like 85% margin.”

OOPS!

Pay attention to the timelines Mr. Jenkins shares throughout the interview. 1. The board had a plan in place to change the CEO after the FY ended. So they were already well into identifying Mark's replacement. Apparently, then, something happened whereby Mark who would have been aware there would be a transition, needed to be fired immediately. 2. The new CEO is a couple months out. That aligns with OpenText World. Expect them to be announced then. 3. Selling of business units is to be one each quarter, Jenkins expecting 2 this year. He is speaking in "fiscal year". This means the board is well underway in the selling off of non core businesses. They are working with buyers already. If you recall, several months ago a new board member was named, a woman, someone with M&A expertise. 3. Mr. Jenkins made it clear that the board is running the company. He pointed this out several times by underscoring that they named James M as interim because he is steady and that the interim CFO is a placeholder. Same for current "management" which for Jenkins refers to the senior leadership team. They are all placeholders following Jenkins directions. None of them other than Savinay who was named the official CTO, are who the board wants running the company. Most will be managed out when the new CEO and CFO take over.

An interview like this is deliberate. The board wants the market and analysts and employees to know the timelines for selling off parts of the non core company and that there is a new set of sheriffs who are in the final stages of selection coming in.

Also, internally, based on directions from the board, there is already positioning for these divestitures. Leaders have been quietly moved out of Micro Focus orgs into legacy OT roles. Expect more if that in the coming weeks and months.

AI ki-led the Cyberhype star.

To me, this sounds like all of Cyber (SMBC and enterprise) will be sold. Enterprise Cyber operated as a separate BU before the acquisition, so I can’t think it’s now core for OT. Like everyone, I just wonder when and what the terms will be.

From Grok, goodbye heritage MF products.

Analysis of the Article: OpenText's Presentation at Citi's 2025 Global Technology, Media and Communications Conference

The Seeking Alpha article covers OpenText Corporation's (OTEX) session at Citi's conference on September 4, 2025, moderated by Citi analyst Steven Enders. The presentation was led by P. Thomas Jenkins, OpenText's Executive Chair and Chief Strategy Officer (and former CEO). Due to the transitional nature of the discussion, the content is limited, focusing primarily on leadership changes rather than deep dives into financials, products, or strategy. Key excerpts from the transcript include Jenkins clarifying his role ("I actually used to be [CEO] about 10 years ago") and addressing the company's ongoing search for a permanent CEO and CFO. The session opens with Enders noting it has been a "transition time" for OpenText, prompting Jenkins to explain the planned CEO handover at fiscal year-end but an unexpected CFO departure tied to external circumstances (former CFO Chadwick Westlake's prior boss suffering a health issue, leading Westlake to return to Equitable Bank as CEO in July 2025).

No specific financial highlights, product updates, market outlooks, or forward-looking statements were detailed in the available transcript excerpt. Analyst reactions were minimal, with Enders probing on leadership expectations but no deeper Q&A insights provided. Overall, the article portrays OpenText in a period of flux, emphasizing stability under Jenkins' interim oversight rather than bold strategic announcements. This aligns with broader context: OpenText's FY2025 (ended June 30, 2025) saw total revenues decline 10.4% YoY to $5.17B, driven partly by the divestiture of its Application Modernization and Connectivity (AMC) business in May 2025, though cloud revenues grew modestly to $1.86B (up ~2% organic). ARR stood at $4.19B, with adjusted EBITDA margins at ~34%, reflecting cost discipline amid macroeconomic headwinds like delayed enterprise spending and tariffs.

The presentation underscores OpenText's challenges post its aggressive acquisition spree (e.g., $6B Micro Focus deal in 2023), which expanded its portfolio but strained integration and organic growth (near-flat at ~0%). Stock performance has lagged peers like Box (down 27% over five years vs. Box's 85% gain), prompting board scrutiny. However, the tone remains optimistic, with Jenkins highlighting the search for leaders to "enhance shareholder value."

### Predicted Go-Forward Strategy for OpenText

Based on the article's leadership focus, combined with OpenText's recent announcements, FY2025 results, and ongoing initiatives (e.g., from Q3 FY2025 earnings in May and the August 2025 leadership transition), OpenText's strategy will likely pivot toward simplification, AI-centric growth, and financial optimization. The company is in the midst of its three-year "OpenText 3.0" plan (launched FY2025), emphasizing "Information Reimagined" via cloud, AI, and security. Here's a breakdown of the predicted direction:

#### 1. Leadership Stabilization and Portfolio Streamlining

• Interim Leadership and Search: With James McGourlay as Interim CEO (since August 11, 2025) and Cosmin Balota as Interim CFO, the focus is on continuity. A CEO Search Committee (chaired by Jenkins) is underway, targeting a permanent leader by early 2026 to drive execution. Savinay Berry's promotion to CTO signals emphasis on product innovation. Expect the new CEO to prioritize operational efficiency, given FY2025's 2,800 job cuts (saving ~$550M annually by FY2027 via the Business Optimization Plan).
• Asset Divestitures: OpenText is actively exploring "portfolio-shaping opportunities" to exit non-core assets (e.g., legacy IT operations tools, software testing from Micro Focus, or app modernization remnants). This could generate $500M–$1B in proceeds by mid-2026, redeployed to debt reduction (net leverage at 2.5x as of Q4 FY2025) or core investments. Rationale: Simplify a bloated portfolio (post-20+ acquisitions since 2016) to boost organic growth from 40%).

#### 2. AI-First Focus in Core Information Management

• Titanium X Platform Acceleration: Launched in April 2025 (CE 25.2), this AI-powered cloud suite integrates content, cybersecurity, DevOps, and analytics. Predictions: 20–30% of new bookings in FY2026 will stem from Titanium X, with modules like Content Aviator (chat-based content search) and DevOps Aviator (AI test automation) driving upsell. By 2027, aim for $1B in AI-related ARR, emphasizing "no-hallucination" AI via secure, enterprise data grounding.
• Aviator Ecosystem Expansion: With 15 Aviators and 100+ AI agents already deployed, expect 50+ new agents by end-2026, focusing on agentic AI (autonomous decision-making). Integrations with Microsoft, SAP, and AWS will deepen, targeting sectors like finance (e.g., ABN Amro win) and government (FedRAMP-authorized tools). Goal: Elevate "knowledge workers" via AI, reducing manual tasks by 40% for customers.

#### 3. Cloud and Recurring Revenue Growth

• Cloud Transition Push: Cloud revenues (36% of total) grew 2.7% in Q2 FY2025; predict 5–7% organic growth in FY2026 via multi-cloud (zero-copy data) and SaaS migrations. Target: 50% of ARR from cloud by FY2028 (up from 40%), with OpenText World 2025 (November, Nashville) showcasing CE 25.3 updates for AI-ready knowledge management and observability.
• ARR and Margins: ARR at $4.19B (81% of revenue) provides stability; expect 4–6% YoY growth through renewals (95%+ rate) and expansions. Margins to hit 35–37% adjusted EBITDA by FY2027 via $1B in 10-year AI savings (e.g., internal automation cutting IT costs).

#### 4. Shareholder Returns and Risk Management

• Capital Allocation: Continue $0.98/share quarterly dividend (up 5% in FY2025, 11th straight raise) and $300M share buyback (launched FY2025, ~21M shares). Post-divestitures, prioritize debt paydown to <2x leverage, then R&D (15% of revenue on AI/cloud).
• Risks and Mitigations: Macro volatility (e.g., tariffs delaying deals) could cap FY2026 revenue at $5.3–5.5B (flat YoY ex-divestitures). Counter: Cost savings from 2,000+ role reductions and AI efficiencies. Competitive pressures from Microsoft/IBM in AI/content will be met via niche strengths in secure, compliant info management (e.g., for 99/100 Forbes Global 2000 firms).

In summary, OpenText's strategy post-Citi presentation will center on "core refocus": divest non-essentials, double down on AI/cloud for 5–10% annual growth, and deliver 35%+ margins by FY2027. This addresses FY2025's revenue stall while leveraging its $5B+ scale and 120K+ customers. Success hinges on swift CEO hire and divestiture execution; expect updates at Q1 FY2026 earnings (October 2025).