A company created from the merger of Citrix and Tibco has confirmed that it has laid off 15% of its staff. Earlier this month, the merger between virtualization firm Citrix Systems and business integration software provider Tibco Software was announced.
The new company, Citrix-Tibco (CTIB), has now confirmed that it has laid off about 150 employees in a response to the coronavirus pandemic. These layoffs mostly affected current and former Citrix and Tibco employees, with roughly 75% of these job losses from the United States.
CTIB CEO David Henshall stated that they had to take this difficult action due to the economic realities currently presented by the coronavirus. He expressed regret for those employees affected and that the layoffs were “absolutely necessary to ensure the long-term health of the company.”
The impact of these job losses was softened somewhat by CTIB offering severance packages and outplacement services to affected employees. It also stated that it will continue to look for ways to significantly grow its business. This could include smaller acquisitions, investments, and even joint ventures.
It should be noted that these layoffs come shortly after CTIB narrowed its loss for the first quarter to just over $48 million, a vast improvement from the fourth quarter’s loss of over $660 million. This financial performance was due partly to cost reduction measures such as employee layoffs and furloughs.
Overall, the Citrix-Tibco merger only recently took place and COVID-19 has already impacted the new company and its workforce. Hopefully, CTIB’s current strategies help attract more customers, which would help the company rebound from this 15% staff cut.
