Thread regarding Open Text Corp. layoffs

Is it another 2k or 400 more on June for a total of 2k employees to be let go? I've read conflicting reports here about this.

It started today. 2000 more people by end of May. Then 2000 by end of June. Company will be gutted. Mark just wants it to be his circus alone along with the board of clowns, they will be taking the coding over now with ChatGPT. Good luck in your miserable life Mark!

There's a notable disparity in the span of control among our managers, with some overseeing 20+ individuals and others managing just 5 or 6. This suggests a need for organizational adjustment

In theory there is no difference between theory and practice. In practice there is. The theory is assuming burnt out employees will train AI simply because they were not laid offc the practice is deploying AI for show that won’t do anything. Mark please cut the pizza in 4 slices, we are not hungry enough for 6 pieces.

OpenText is following the playbook on tsia.com, read https://www.tsia.com/resources/state-of-revenue-2025-survival-guide

Cost control is layoffs and replacing with Ai.

This is word salad. Expansion through reduction?

Barron-shame!

If you know Python or what to move from team to team implementing automation, then OpenText has a bright future for you as long as you are happy with your pay. If you are looking for an innovative tech company that’s going to grow, look elsewhere. The 2040 goal is to get the company down to less than 1000 employees without losing revenue (or with very minimal growth). The remaining positions 15 years from now will all be executives and people continually training the AI. The dot-com bo-m of the 90s is not coming back. Silicon Valley will just be highly skilled AI experts and executives. OpenText is embracing this early since they have growth and financial issues now… but other companies will soon follow.

The Board of Directors approved Mark's plan on April 29th. Apparently, they support him, and they support slashing another 2K positions on top of the 1600 completed last week.

When all is said and done, FY26 will start with a 15% reduction in work force from the previous FY.

So another 2K in WFR.

AI did not replace any job . This is a lie from Mark B . OT do not any AI project or skill set.
He just an ineffective CEO who have no clue how to manage an organization.

Total revenues: $1.254 billion, -13.3% Y/Y or -4.5% when adjusted for the AMC divestiture
Annual recurring revenues (ARR): $1.030 billion, -10.1% Y/Y or -2.8% when adjusted for the AMC divestiture
Cloud revenues: $463 million, +1.8% Y/Y, 17 consecutive quarters of cloud organic growth
Quarterly enterprise cloud bookings(2):$151 million, -8.4% Y/Y
Cash flows: Operating $402 million and free cash flows(3) $374 million
Net income: GAAP $93 million, -5.6% Y/Y, Non-GAAP(3) $216 million, -16.0% Y/Y

All key financials are down. Cloud revenue up slightly but offset by poor cloud bookings. Cash flow and net income are shrinking. How will OT pay off the huge remaining MF and other debt which is still around $6 billion?

Stock propped up by recent buy back program. Savings from layoffs may drive some uptick in the beat down stock, but long term outlook is bleak. Growth company is dead. Selling off more businesses may be the only way forward. Trying to compete in ITOM and Cyber in a flooded market against proven solutions is an uphill battle. Company has been mismanaged into a very bad position.

https://www.reddit.com/r/wallstreetbets/s/hPD8pNcA7o

Wow layoffs to invest in Aviator AI platform, Content, Security and Cloud growth products. This is a catch-22, how can you grow without people. AI is not magic…they need “Knowledge Workers” to train the models.

Does anyone have details on the OpenText AI that’s was sold and being used by Pacific Life, US Air Force, Froneri, and Bosch? Mark thanked them in LinkedIn for their incredible partnership and trust in our AI First strategy.

Will be interesting to hear details on this on the earnings call tomorrow morning and hope the analysts ask for more details on the current and planned future layoffs along with specifics on how OpenText is going to deploy their own software internally thus removing Salesforce, SAP and reducing their spend with Microsoft. Can’t use marketing spin in an earnings call and with the Sarbanes-Oxley Act Mark and the ELT can’t play d-mb. Hope they announce Mark’s retirement, that would be a step in the right direction. Otherwise it will just be layoffs every quarter until OpenText gets acquired.

Expansion of the Business Optimization Plan
On April 29, 2025, the Board approved an expansion of our previously announced Business Optimization Plan to complete strategic initiatives, integration and simplification following the Micro Focus acquisition, AMC divestiture and other growth and innovation plans including the deployment of AI and automation. We expect up to approximately $200 million of additional costs to be incurred to complete this final phase of the Business Optimization Plan, bringing the combined plan up to approximately $260 million. This expansion includes costs associated with workforce reduction due to automation, centralization and simplification, and corresponding facility costs related to a reduction of our real estate footprint globally. On an overall basis, the expansion is expected to result in a total net reduction of approximately 2,000 positions, an increase of approximately 1,600 positions from the previously announced plan

1600 is now 2000

More engineers and developers being told to kick rocks?

Individual contributors as well? What’s the criteria for their dismissal?

It would be satisfying to see some of these complacent, obsequious managers—who seem to do nothing but pander to upper management to protect their jobs and privileges—finally held accountable for their inferior performance, or even let go.
During my brief time at Opentext, I had a manager with no education or relative experience, whose primary activities included micromanaging others, eavesdropping on customer calls, reviewing emails sent to clients, and hosting theatrical meetings that wasted time and hindered productivity. Perhaps it's time to put a little schadenfreude into practice.

Will Costa Rica be further impacted?

All regions.

any regions / verticals / products getting focus?

There are individual contributors on the WFR list also. The end result is fewer team managers and fewer leaders, but also fewer individual contributors. But yes, this is accurate.