Citrix Systems and Tibco Software plan to lay off about 1,000 employees once the software companies merge in late September, Bloomberg reported.
Citrix has 10,316 employees on LinkedIn, while Tibco has 4,794 employees as of September 11, 2022.
The merger, overseen by private equity firms Vista Equity Partners and Elliott Investment Management, will take Citrix private and merge the company with Tibco. The combined software company will serve 400,000 customers, including 98 percent of the Fortune 500, with 100 million users in 100 countries, the buyers said earlier this year.
The $16.5 billion Citrix buyout, announced in January 2022, has apparently overcome a $15 billion debt financing challenge, and the Citrix-Tibco merger now appears on track to close by the end of September 2022, according to an SEC filing.
Related: See all the layoffs in the tech industry here.
Fired Citrix, sale of Wrike assets?
Part of the financial model may include Citrix selling Wrike, a security management software startup that Citrix acquired from Vista in 2021 for $2.25 billion, Bloomberg reported.
On the cost-cutting front, Bloomberg said:
- Citrix and Tibco plan to reduce costs by $371 million annually;
- that includes one-time costs of about $200 million and 955 layoffs — including sales and marketing cuts of about 450 jobs.
Prior to the deal, Citrix turned to cloud subscription services — with mixed results. Indeed, the fourth quarter 2021 financial results include: