Ontario, July 5: OpenText, a Canadian IT firm, announced that it would lay off around 1,200 people as part of its business optimisation plan. The OpenText layoffs are expected to cost the company around 60 million Canadian dollars (around USD 44.1 million dollars). With the announcement of the tech layoffs, the Canada-based information technology company will likely reduce expenses in the next year.

Reuters reported that OpenText announced the layoffs on July 4, 2024. The Canadian IT company said the job cuts would affect around 1.7% of its workforce, leading to about 1,200 people losing their jobs. The company announced the OpenText layoffs to save costs and reinvest millions of Canadian dollars into new roles in the departments. UKG Layoffs: US-Based Software Firm Announces Massive Layoff Round, Cuts Over 2,200 Jobs as Part of Organisational Changes To Focus on Growth Areas.

The report mentioned that with the layoffs, OpenText aimed to reduce its expenses by 150 million Canadian dollars in 2025. The information technology company would reportedly invest around 50 million Canadian dollars annually in  800 new roles in sales and engineering departments. 

In 2024, the tech layoffs have affected thousands of people from various companies. The OpenText layoffs are just one of the massive job cuts in the tech industry. Recently, US-based software company UKG (Ultimate Kronos Group) let go of around 2,200 employees amid organisational changes and focus on the growth area. 

OpenText is one of the well-known IT companies with around 1,20,000 enterprise customers across 180 countries. This Waterloo-based company was founded in 1991 and, over the years, grew to become the global market leader in information management. OpenText was the fourth-largest software company in Canada as of 2022, and it was also recognised as one of Canada's top 100 employers in 2016 by the media company Mediacorp Canada Inc. Microsoft Layoffs Continue: Tech Giant Reportedly Lays Off Unspecified People From Various Departments and Locations To Focus on Future Investment, Increase Profit Margin.

OpenText offers services and solutions related to artificial intelligence (AI) and work-related solutions and caters to various industries like banking, insurance, healthcare, industrial manufacturing, and more. According to reports, over 1,00,900 employees were laid off by 356 companies in 2024 through tech layoffs implemented to reduce costs, restructuring business, and other reasons.

(The above story first appeared on LatestLY on Jul 05, 2024 03:46 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).