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Citrix to axe 1,000 workers, tells GoTo to go to someplace else
Spin-offs and layoffs abound in corporate blood-letting
Citrix has announced plans to lay off 1,000 employees as part of a corporate reshuffling that will also include spinning off its GoTo brand.
The IT giant said it would be letting the GoTo family of products, including GoToMeeting, GoToAssist and GoToMyPC, cast off on their own as a standalone operation. Citrix said the spinoff is expected to be completed in the second half of 2016.
"Upon review, it is clear to us that the GoTo family of products is best suited to grow and operate as a standalone business,” Citrix interim president CEO Bob Calderoni said in a canned statement.
Chris Hylen, vice president of the Citrix Mobility Apps business unit, will take over as CEO of the spun-off GoTo company following the split.
Citrix, meanwhile, will shift its focus over the Xen brand of virtualization tools and the NetScaler and ShareFile brands. The move will also include the loss of 1,000 jobs outside of the GoTo operation. The biz employs about 9,000 folks.
Citrix did not provide details on the job cuts other than to say the reductions would look to "balance resources with demand across the company’s marketing, general and administration areas."
The layoffs are expected to take place in two phases in November of this year and January of 2016. Citrix said it expects the payouts to its laid off workers will cost somewhere from $65m to $85m.
The virtualisation vendor is making moves some months after activist investor Elliot Management upped its stake in the business and outlined a "strategic and operating plan", criticizing the management team. ®