Fort Lauderdale-based Citrix Systems to lay off hundreds
'It's extremely difficult to make a restructuring decision like this,' Citrix executive says
FORT LAUDERDALE, Fla. – Citrix Systems announced that a restructuring plan meant to save $90 to $100 million annually before taxes will require about 900 job cuts.
The multinational software company with headquarters in Fort Lauderdale employs at least 1,600 people in South Florida and 9,166 worldwide.
The announcement's break down: 700 of the job cuts will be full-time positions and 200 will be contractor positions. The company plans to spare quota sales people.
The company announced that in the process it will be consolidating several offices. The news, which was disclosed via a securities filing Wednesday, did not reveal how the specifics of the plan would affect the Fort Lauderdale office.
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Mark Templeton, chief executive officer of Citrix, said the company is still going through the notification processes, but expects the layoffs to be completed by the end of the year.
The stock price fell about 1.53 percent an hour after the announcement.
Citrix reported a lower net income on increased revenues -- placing the 2014 net income at $252 million, as opposed to $340 million in 2013. The company expects to record about $49 to $55 million in restructuring costs.
David Henshall, chief operating officer of Citrix, told the South Florida Business Journal's Celia Ampel that the company aims to invest the millions it will save in long-term growth in mobility, cloud services and networking.
In Florida, the department of economic opportunity offered the company in 2013 about $1.65 million in incentives to create 210 jobs. If there are job cuts in Florida, the company would no longer qualify for the incentive, which it has yet to claim.
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