Citrix initiates 'Restructuring Program' – jobs and facilities to go

Citrix has initiated a "Restructuring Program" under which the company will reduce headcount and close some offices. The Register understands that staff around the world have already been let go. The application streamer on Monday emitted a regulatory filing that detailed a plan that includes "elimination of full-time …

[ecofeco]

How much?!

$65m to $90m of which has been set aside to cover EXECUTIVE employee severance payments.

There. Fixed.

[Anonymous Coward]

Ouch.

What do they make these days?

Was that the problem?

[Anonymous Coward]

OMG, you mean you have to actually PAY your staff to work?

No wonder you can't make a profit!

What ever happened to good old fashioned slavery anyhow? :(

[Anonymous Coward]

Eh?

"The CEO also described "cash flow headwinds" that came from colossal commissions owed to salespeople who cashed on in COVID-created demand for Citrix's remote working wares. Those payments – about $100 million worth – made for lower margins."

Surely if the salespeople sold a shedload more licenses and are due the commissions, the company should be getting more revenue, especially with the subscription model they have now.

Are the salespeople offering massive discounts on large volume sales but trousering the same commissions?

[Anonymous Coward]

Re: Eh? Likely

Urgent gov contracts pell mell booked while in panic mode as entire divisions/ministries went remote are back biting some a**es.

[Anonymous Coward]

How to kill a company…

Throw out the people who created it… and extract the cash :(

[Anonymous Coward]

Re: How to kill a company…

So what's the over/under on an HPE acquisition... For 'Recurring revenue'

[Pascal Monett]

"Investors appear not to mind the new restructuring plan too much"

Historically investors have never minded people being laid off.

They have, however, greatly minded the subsequent loss of revenue that happens more often than not.

[TonyJ]

Part of Citrixs's problem

Is that everything they do can now be done either cheaper and/or better and they've struggled to innovate for a long time now.

And when they have come up with innovative tech (anyone remember XenClient? A true, bare-metal, desktop hypervisor which was a godsend for people who work on multiple accounts) they have a tendency to drop it and/or sell it off.

Add to that their habit of rebranding their technologies again and again and again, so it becomes ever more difficult to know what does what then it's just not a good recipe.

[Anonymous Coward]

Obligatory Dilbert