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January 29, 2015

Citrix slashes 900 jobs as profits drop

Restructuring plan targets $100 million savings.

By Amy-Jo Crowley

Citrix has announced it will cut as many as 900 jobs over the next year after the firm reported a sharp fall in Q4 profits.

As part of a restructuring plan, 700 full-time and 200 contract positions are expected to be cut and some offices consolidated, which Citrix hopes will result in $90m to $100m a year in pre-tax savings and increased operational efficiency.

The layoffs come as Citrix said net profit for the fourth quarter ending in December last year hit $95.3m, down from $138.6m in the same quarter last year.

Analysts on average had expected Q4 revenue of $1.02 a share on revenue of $844.1m.

But the company earned $1.10 per share on revenue of $851m, partly due to higher income from its licensing, consulting and software-as-a-service businesses.

For the fiscal year of 2014, Citrix also reported revenues of $3.14bn, in line with Wall Street estimates, as net income slid from $340m to $252 million.

CEO Mark Templeton said he was "proud" of the company’s performance but "not satisfied".

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"We are looking ahead to 2015 with a focus on innovation that delivers a better experience, more flexibility and greater security to our customers, and a more focused organizational footprint that enables profitable growth," he said.

He added: "Our focus on enabling a software-defined workplace is putting Citrix in front of this strategic challenge through the unique integration of our delivery networking solutions, workspace services and mobility apps."

Citrix unveiled its XenMobile suite of mobile computing apps earlier this month.

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