Reorganization in Cloud Business Causing Citrix Layoffs
Multinational software company Citrix Systems, Inc. announced this past week that it is laying off an undisclosed number of employees from its global workforce. Various sources, however, confirm that the Citrix layoffs have hit dozens, if not hundreds, of its employees in Raleigh, North Carolina, where the company’s major cloud business unit “ShareFile” is based.
The Fort Lauderdale, Florida-based company had about 800 employees in Raleigh as of December 2016. Now the total headcount in the city stands at 619. Citrix has confirmed that the downsizing at the location mostly resulted from this week’s job cuts.
Citrix Layoffs in Raleigh and Other U.S. Locations
Although there were Citrix layoffs in various divisions and locations, employee comments on online forums like “Layoff.com” and social media web sites like “Twitter” reveal that most of the job cuts are at Citrix’s ShareFile and “Application Layering” divisions in the United States.
Employees laid off in the restructuring have shared on Layoff.com an internal e-mail by Citrix CEO David Hensall. The e-mail reveals more information on the company’s restructuring initiative.
The company is discontinuing some of its products as it shifts its focus toward cloud-based software solutions. As part of the plan, Citrix is shutting down its offices in Santa Barbara, California, and Tempe, Arizona.
The publicly traded software company, specifically known for desktop visualization and networking, is gradually turning toward improving its Citrix ShareFile cloud business, with a greater focus on targeting the enterprise market.
To break down the technical jargon, this means that Citrix is planning to go beyond the small and medium-sized businesses to target the bigger enterprises.
Large corporations use enterprise resource planning (ERP), a lo0se term for the software system used by big businesses to consolidate all their functions into one place. With the advent of cloud computing, these big businesses are opting for Internet-based cloud ERP software systems over old-school native on-premise software systems.
On-premise software systems restrict businesses to accessing data only through the company’s internal servers. Cloud-based software systems. however, allow companies to access their internal data securely at any time, from anywhere in the world. This allows large businesses and their employees more flexibility.
Citrix’s ShareFile software also works on the same lines. The software allows employees of big and small companies to collaborate with each other, share files, assign tasks, and keep track of workflows, all at one place within the ShareFile cloud.
Citrix plans to extend and improve its ShareFile services to make them more appealing to large enterprises that are in a better position to pay higher prices, compared to small and medium-sized businesses.
Focus on Cloud Computing Leading to Job Cuts
The growing demand for cloud computing is forcing software companies to shift their focus away from traditional on-premise solutions to Internet-based cloud solutions.
Amazon.com, Inc. currently leads the pack with its “Amazon Web Services” (AWS) cloud solutions. Software giants like Microsoft Corporation, Oracle Corporation, and International Business Machines Corp. (IBM), however, are now trying to overtake Amazon by improving their own cloud offerings.
In the process, all these software companies are undergoing structural changes that are causing many old-school IT workers to face layoffs as they get replaced by techies specializing in cloud-based services. We already witnessed hundreds of layoffs at Microsoft, Oracle, and IBM earlier this year as these three companies transition toward the cloud.
The Citrix layoffs are yet another addition to this growing list of software companies that are cutting jobs as they adapt to new technologies and their customers’ changing needs.
“SEC filings offer new details on Citrix’s layoff plan,” Triangle Business Journal, October 5, 2017.
“Dozens laid off from Citrix’s Raleigh hub but hiring to continue,” WRAL TechWire, October 5, 2017.
“David Henshall email,” TheLayoff.com, October 4, 2017.
“IBM laying off U.S. workers to shift focus to cloud, cognitive computing,” CBC News, March 4, 2016.