Citrix, Tibco Layoffs: 5 Things To Know
Wade Tyler Millward
A person familiar with the situation tells CRN that cutting 15 percent of Citrix and Tibco’s workforce, which is what Cloud Software Group CEO Tom Krause has noted as the percentage of employees being laid off, comes to about 2,000 jobs.
Layoffs Come After Acquisition
The changes come four months after the acquisition of Citrix in September for $16.5 billion. Investment firms Vista Equity Partners and Evergreen Coast Capital—an affiliate of Elliott Investment Management—took Fort Lauderdale, Fla.-based Citrix private, merged it with Palo Alto, Calif.-based Tibco and created a new parent organization, CSG.
In November 2021—two months before Vista and Evergreen unveiled their acquisition plans, Citrix had said in a filing with the U.S. Securities and Exchange Commission that its board had approved a restructuring plan that included “the elimination of full-time positions,” with $65 million to $90 million earmarked for employee severance agreements. It’s unclear if Tuesday’s layoffs stem from that pre-acquisition plan.
The source said that the Citrix acquisition and the planned acquisition of VMware by chipmaker Broadcom represent “a major bellwether change” in the VDI market.
The virtual desktop industry has gotten more competitive for Citrix and VMware as cloud giants such as Amazon Web Services and Microsoft have rolled out similar services and turned to third-party vendors to keep users within the hyperscalers’ environments.