Thread regarding Citrix Systems Inc. layoffs

Thoughts? CEO: Citrix 'underestimated the impact' of layoff round, will miss revenue target

http://www.bizjournals.com/triangle/blog/techflash/2015/04/ceo-citrix-underestimated-the-impact-of-layoff.html

Citrix (Nasdaq: CTXS) CEO Mark Templeton says the company “underestimated the impact” of its recent restructuring plan – a layoff round that, while it barely nicked the Raleigh headcount, packed a punch to the global headcount of the Florida technology company. About 900 people lost their jobs.

The comments were made as Templeton reported that revenue will likely fall in the range of $755 million to $760 million, below the previously reported guidance of $780 million to $790 million.

Templeton reiterated to investors what he said previously about that restructuring plan, that it was “to get the business ready for our next phase of growth.”

Citrix announces its earnings officially on Wednesday, April 22.

“We are disappointed with our Q1 results, but fully committed to the financial, operational and strategic initiatives announced last quarter,” Templeton says.

In addition to the restructuring plan, the results were blamed on foreign exchange issues that “impacted results and customer-buying behavior to a larger extent than anticipated in the quarter.”

It's not the first time in recent months Templeton has warned investors of a revenue miss.

In October, the firm warned it would miss its revenue guidance by about $20 million for that quarter.

“While we are disappointed that we fell short of our expectations this quarter, we remain confident in our strategy and markets,” Templeton said at the time.

In January, he announced the restructuring plan.

Citrix, which develops products that make it easier to work remotely, brought hundreds of jobs into downtown Raleigh when, after acquiring Raleigh-based Sharefile, it decided to build a massive campus in the Warehouse District.

Stock had fallen nearly 3 percent by mid-morning to trade at $62.80 per share.

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| 1051 views | | 7 replies (last April 22, 2015) | Reply
Post ID: @OP+AW8BPjj

7 replies (most recent on top)

Thanks citrix after more than 10 years working in the uk I'm finally redundant after being notified back in Feb and spending the past 2 months relaxing. A nice chunk of cash coming my way and already started a new job..thanks for the bonus !

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Post ID: @cjWh+AW8BPjj

The rehiring of positions they eliminated has already begun.....didn't take long.

2009 it was at least 6 months. this time around seems to barely be 3 months.

who made the decisions as they seem to have been not the best choices. pitty about the talent lost that isn't so easy to get back.

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Post ID: @ao08+AW8BPjj

Some of the impact of these changes will take months if not year to complete, This is where I think Americans do go wrong, they don't realize that Europe is not USA, I.E you can't just get rid of people it cost you money and time. I am not so sure they are saving all that much of money by delayering in the short term, and if they do they will need to rehire so what is the point!

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Post ID: @9b3I+AW8BPjj

omg these replies are funny yet true

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Post ID: @5hX5+AW8BPjj

Templeton reiterated to investors what he said previously about that restructuring plan, that it was “to get the business ready for our next phase of growth.”

Yep, fire everybody to prepare for "growth". Growth of bonus money maybe, but not the business.

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Post ID: @4Vke+AW8BPjj

how amusing. a completely botched layoff round that targeted some of the best performers and is now coming back to bite? who would have guessed.

how about mark go and call up the people who were laid off and get them back so those of us left can get some help. wait, that's right - they won't take your calls.

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Post ID: @3aQO+AW8BPjj

Two quarters in a row where they under performed and missed made up revenue targets. Getting rid of 900 people was supposed to fix that in their minds but basically they learned it was just a knee jerk reaction that didn't really do anything but make the investors happy and severely damage company moral and caused disruptions. Sort of funny now (in a black humor way) to see them claiming to be surprised that they underestimated the disruption of letting 900 people go.

However, this couple with the departure of Al Monserrat, Matthew Morgan, Rakesh Narasimhan, Sudhakar Ramakrishna, and the up coming departure of Catherine Courage doesn't really inspire a lot of confidence.

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Post ID: @252i+AW8BPjj

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