OpenText has announced that they will trim 5% of its global workforce in efforts to renew its focus on cloud profitability. OpenText is reported to have 8,500 employees worldwide. OpenText, the largest software provider based in Canada, possesses revenues of $1.6B a year. OpenText is known as a global leader in Enterprise Information Management.
The move to focus more on cloud comes as CEO Mark Barrenechea comes back to OpenText. Barrenechea had been absent from day to day operations due to a battle with leukemia. Analysts have commented that Barrenechea has not wasted any time since he has rejoined the company and the shift to focus more on cloud solutions is evidence of that.
“Today, cloud is approximately one-third of our total revenues. In the next few years, we need the cloud to be the majority of our revenues,” said Barrenechea.
“As we look to the future, we see customers transitioning to the cloud and this is the new growth opportunity; we will follow that growth opportunity, and be the market leading EIM business in the cloud,”added Barrenechea.
Sources say that OpenText will likely focus on acquisitions in order help grow its cloud services portfolio.
CEO Barrenechea continued his comments by saying, “Effective immediately, we are announcing a simplification of our business structure around enterprise, information exchange and analytics.”
The restructuring and refocusing of OpenText on cloud revenues will allow OpenText to have more direct relationships with its customers.
John Doolittle, COO of OpenText says, “Customer support and professional-services teams have been consolidated into one group called global technical services under one leader.”
Doolittle added to his comments saying, “We will also make changes to other areas of the business such as our facilities footprint as necessary, again, with a focus on finding efficiencies and streamlining our organization to focus on the cloud.”