(Waterloo) OpenText’s chief executive said the company plans to cut about 1,200 jobs as part of a plan to streamline its business.
In an open letter to stakeholders, Mark Barrenechea said the move was about putting the right talent in the right places, funding growth and innovation, and ensuring higher productivity, lower costs and increased margins.
He said the job cuts at the Waterloo, Ont., software company would result in one-time costs of about $60 million, but would generate about $150 million in savings annually.
Opening a new chapter for the company, these cuts are to be combined with a plan to create 800 new positions in sales and engineering.
The new chapter, which the company calls OpenText 3.0, will focus on innovations in cloud computing, security and artificial intelligence.
In the cloud segment of the company, Barrenechea said the company will find ways to automate and improve worker productivity, and in the AI part, it will look for ways to transform business processes.