Citrix to layoff 1,000 employees, spin off GoToMeeting
Citrix Systems Inc., the cloud-services company, is planning to cut about 1,000 jobs and spin off its Goleta-based GoToMeeting division rather than sell the online meeting organizer, it announced Nov. 17.
Activist investor Elliott Management Corp. has been calling for change at the software firm.
Citrix also noted that it would restructure its labor force, focus on its core business and optimize operations and resources. The company said it expects to cut about 1,000 full-time and contract jobs, mostly this month and in January 2016, excluding the effect of spinning off the GoTo business.
“We are simplifying our business in all areas — product, marketing, sales, operations and development,” said interim Chief Executive Bob Calderoni in a news release.
As a standalone business, GoTo could have a market value of about $4 billion, said someone who asked not to be identified because the discussions are private. Citrix explored a sale for the unit and didn’t find a buyer, the person said. Citrix has a market value of about $12 billion.
Citrix in July added Elliott’s Jesse Cohn to the board. Elliott owns about 7.5 percent of Citrix.
• Bloomberg News contributed to this report.