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Citrix to cut jobs by 10 percent; employees find out Friday

If you haven't already heard, Fort Lauderdale-based Citrix cutting 10 percent of its staff. Out of the roughly 5,000 employees, about 1,800 are in South Florida. And most U.S. employees will find out by Friday if they still have a job. Employees are finding out through private meetings with human resources staff about their severance and benefits.

I had a convo over a few e-mails with Citrix spokesman Eric Armstrong. He said this was only the second time in the company's 20-year history that they've had to take action like this.

"Our goal is to ensure that we reduce our expense structure enough through this single event that we only have to do it once," he wrote.

I also asked if this is going to impact the company's new virtualization product that was part of a collaboration with Intel that was just announced last week. He said each of their virtualization solution areas (application, desktop and server) will obviously be impacted by job cuts, but "decisions will be made to keep the right level of strategic investment on these products.  We are not divesting of any product."

There have been speculations in the past about how Citrix was thinking of moving headquarters out of South Florida. Armstrong said there were no plans to move. But the company is doing a few other things to cut costs. He wrote:

"When it comes to cost reductions, eliminating any employee’s position is always a last resort. This restructuring is part of a much broader plan to streamline operations across the entire company. We are rationalizing the use of temporary and contract workers; cutting travel expenses with a stronger focus on holding virtual meetings and events; delaying non-strategic projects; changing the way we conduct corporate events by eliminating or replacing them with lower cost alternatives; delaying or eliminating lower priority capital spending; and asking everyone to re-consider every discretionary dollar they spend. We are also centralizing all of our procurement processes to gain additional leverage and economies of scale with all our suppliers worldwide."

He added that global IT spending is expected to decline by 4 to 6 percent in 2009, meaning less companies buying from software, hardware and services vendors.


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