The parent company of Citrix is working with partners who will rehire “many” of the staff it is laying off amid a streamlining push.
In a LinkedIn post last night, Tom Krause, CEO of Cloud Software Group, confirmed that the firm had yesterday notified around 12% of its workforce that their roles have been “eliminated”.
Continuing a trend that has seen partners take on jettisoned vendor staff (and pick up extra work) during the downturn, partners are expected to rehire “many of those individuals to continue providing outsourced services to Cloud Software Group”, Krause added.
This applies to roles in its operations, security and IT functions.
Cloud Software Group was born in 2022 from the merger of Citrix and enterprise data vendor TIBCO. The vision is to build a $20bn-plus diversified software company.
Having cut 15% of its workforce in January 2023, it enjoyed a “highly successful year that saw a tremendous amount of progress for the business”, Krause claimed.
Further change is needed, Krause added, however, as he noted that “change often means difficult decisions”.
“While we have a number of areas of the business where our plans involve additional hiring to support our goals, they also mean a pragmatic look at those places where we simply need fewer or different resources,” he wrote.
Tech giants including Microsoft, Amazon and Google cut 240,000 staff last year, TechCrunch estimates. Cloud Software Group’s latest cuts serve as a reminder that the cull is not yet over.
Talking to IT Channel Oxygen in December, Sarah Shields, Alliances Director at Computacenter, which is Dell’s largest partner in Europe, said layoffs at Dell last year presented a “great opportunity to hire some of their talent”.
“Have partners benefited? It’s two-fold. Yes, you’ve got access to talent. The majority of resellers haven’t had the job cuts that the big vendors have, so that’s a really good opportunity for everyone,” she said.
“But when you look at the staff that are being laid off, it’s also an opportunity for partners to step forward and fill the gaps that that talent has left. There’s a lot of pre-sales and some front-line sales [that have been impacted]. That’s a great way partners can really show their value and support the vendors – it’s their time to shine.”
