Thread regarding Micro Focus layoffs

OpenText is back and the acquisition is now official

MF stock almost doubling on Friday 26th.
Bitter side of the this is the fact that OpenText will also borrow the money to afford this acquisition.
We all know what that will end up with: continuous cost management.

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Post ID: @OP+1ipkG62g

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For those MF'ers still there - please consider how you communicate with HR "Business Partners" VERY CAREFULLY. From personal experience they exist as a spy lens for your mgmt. and will quickly turn on you once it is opportune to do so.

Get out and good luck. Used to be a decent place but the toxic layer of middle management has truly run key talent and capable people out a long time ago.

Post ID: @edse+1ipkG62g

All of those cuts were eventually paid back out later in the year.

Post ID: @4qyy+1ipkG62g

Have a read of this

Post ID: @4nnt+1ipkG62g

I thought I was the only one who noticed that. Good and bad to know that I was not mistaken.
The circle continues. Overpay for assets, synergy savings fails, cost cutting leading to IT, process and comms issues. Wait for next mob willing to overpay.

Post ID: @3fro+1ipkG62g

"OpenText, one of Canada's largest software makers, said it expects cost savings of $400m after the deal closes".

  • Meaning, after swallowing Micro Focus whole, and when factoring in the operating expense as Micro Focus provided OTEX in negotiating the deal, OTEX expects its now larger company to slice $400m from the combined operating expense.
  • Some will come from operating efficiencies due to scale, but the largest chunk of that savings will come from employee expense.

*In previous aquisitions, of which OTEX has many as this is its business growth model, the company is poised within the first month post final aquistion to eliminate 80% of the newly acquired workforce.
*OTEX is an acquisition machine. It does this well. OTEX currently has detailed data of the current headcount of MFGP - all part of pre-sale vetting. They have a plan in place for OTEX operations post acquisition with headcount targets. Do not believe there is a "period of time" post acquisition during which former MFGP employees are safely employed while OTEX "figures things out". It is determined.
*Highly recommend employees begin their employment search immediately, unless you are comfortable with the 20% odds. Keep in mind these odds are also highly dependent on your position. HR, Sales Ops, Marketing, Communications - 100% overlap and not needed, with previous acquisitions at 95% WFR for acquired workforce.

Post ID: @1tjv+1ipkG62g

Apparently last fiscal year OpenText implemented a compensation reduction across the board and stopped contributing to employee's 401Ks under the premise of avoiding RIFs/WFRs. But then the company followed that with huge WFRs. Notification below.

Temporary Compensation Reduction

We are implementing a temporary compensation reduction through the end of FY21. Executives and more senior employees will be asked to take on a greater reduction.

I will be taking a 63% percent reduction in overall cash compensation, including foregoing my Fiscal 2021 bonus. The Executive Leadership Team will receive a 15% reduction in compensation, while managers will receive a 10% reduction and all other employees a 5% reduction, except for those who make less than $20,000 USD per year, who will be exempt.

We will also be temporarily suspending the OpenText match to retirement plans for North American employees starting in June.

These compensation reductions are temporary, and we plan to keep them in place until June 30, 2021. They will be implemented following local processes in various countries, and more detail will follow with specific details relevant to your country and position.

If the COVID-19 crisis ends sooner, we will act sooner to return to normal.

Post ID: @1ewc+1ipkG62g

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