Citrix Parent Cloud Software Group Cuts 12 Percent Of Workforce

'These decisions are never taken lightly, but are necessary to build the strongest foundation possible for the future,’ CSG CEO Tom Krause says.

Cloud Software Group, the parent of cloud vendor Citrix, has laid off about 12 percent of its workforce as part of streamlining the company – with some of those laid off employees expected to get hired by partners.

CSG will hire additional employees in parts of the business, but in the parts where jobs were cut, the company took “a pragmatic look at those places where we simply need fewer or different resources,” according to a Wednesday LinkedIn post by CEO Tom Krause.

“Cloud Software Group is committed to building a foundation of sustainable value creation for our customers and partners,” Krause said in the post. “To those impacted, thank you for your contributions in the first year of Cloud Software Group. These decisions are never taken lightly, but are necessary to build the strongest foundation possible for the future.”

[RELATED: Citrix Parent CEO: 15 Percent Of Workforce Cut, Layoffs ‘Designed To Strengthen’ CSG]

Citrix Layoffs

In his post, Krause said “many of those roles, namely in Operations, Security and IT functions, we are working with partners who will rehire many of those individuals to continue providing outsourced services to Cloud Software Group.”

A CSG spokesperson told CRN that the company cut about 1,000 employees worldwide across business units and corporate teams. About 500 of those employees should get “rehired in an outsourced capacity.”

This latest round of layoffs comes exactly a year after CSG cut 15 percent of its workforce, thousands of jobs, with plans for Citrix to focus on its top 1,000 customers and leave mid-tier and commercial accounts for service and support by solution providers.

Citrix has about 13,000 partners worldwide, according to CRN’s 2023 Channel Chiefs.

In his post, Krause said the first full year of business for CSG – created in September 2022 when investment firms Vista Equity Partners and Evergreen Coast Capital took Fort Lauderdale, Fla.-based Citrix private for $16.5 billion and merged it with Palo Alto, Calif.-based Tibco – left him “pleased with our progress” and “highly optimistic about our future.” CSG’s customer retention and financial results for the first fiscal year came “in ahead of plan.”

CSG’s other subsidiaries include XenServer, NetScaler, ShareFile, ibi and Jaspersoft.

More than 100 million users worldwide use CSG offerings, according to the vendor.

Krause said he wants “to build a $20+ billion diversified software company that develops, sells, and supports mission critical products that serve enterprises globally.”

In 2024, he wants CSG to “continue to simplify our internal processes, programs, and systems with more streamlined and centralized operations and “better align our go-to-market functions and resources with the strategy of the business units they support.”

He also sees room for improvement in further focusing CSG’s “product roadmaps on investing in the innovation that best meets our customers’ needs,” according to the post.

LinkedIn users who posted about their departure from CSG include: