Citrix plans to lay off 10% of global workforce. Microsoft planning 5%. VMware? No layoffs planned.

There's a little surprise hidden in the depths of Citrix's 4Q08 and FY08 earnings results. The company announced the "implementation of a restructuring program and steps to reduce its headcount by approximately 10 percent of the company's global workforce.

There's a little surprise hidden in the depths of Citrix's 4Q08 and FY08 earnings results. The company announced the "implementation of a restructuring program and steps to reduce its headcount by approximately 10 percent of the company’s global workforce." This comes on the heels of Microsoft's first ever round of layoffs last week, where they announced that they'd lay off 5000 workers, or 5% of global headcount.

VMware hasn't had any mass layoffs so far, and none are planned at this time. In fact, they have 193 job openings on their website (https://www.vmware.com/company/jobs/openings), including several in their desktop virtualization division. (In related news, did you know that we also have a job board at www.brianmadden.com/jobs?)

All three companies are claiming they'll keep focused during the downturn economy, and they'll be stronger than ever on the upside

 

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Yet, at the same time, both companies have job postings on thier websites (members.microsoft.com/.../default.mspx and www.citrix.com/.../index.asp). Admittedly they aren't large numbers, but both orgs are still hiring (go figure).


Paul Thurrott did a pretty good write-up on the Microsoft layoff plans on WindowsITPro.com


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Brian, we get it you love vmware and get hummers on the side or whatever.


Can we get back to some impartial reporting?


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I generally don’t comment on these types of articles, but what interests me about all the buzz around Citrix cutting jobs is that no one is actually analysing the numbers of the Citrix 4Q08 and FY08 - they’re just commenting on the lower that expected performance and consequent decision of Citrix to cut jobs. Let’s ask some questions – did customers just stop buying Citrix products in anticipation of global downturn, did they just stop buying Citrix products all together or did they jump ship to other vendors? Do we have any numbers?


Around one year ago today, we all witnessed what seemed to be a confidence drop in Citrix and their direction as a company/ developer. The event I’m talking about was the exodus of some Citrix Technology Professionals and other well respected SBC specialists to Provision/ Quest Networks. Now that almost twelve months have passed, how has Provision/ Quest Networks found the value for their dollar in employing these industry professionals, and how has this equated into dollars. If customers turned away from Citrix, did Provision/ Quest Networks pick them up, and if so, then Provision/ Quest Networks should be posting some very nice numbers about now. If not then we can only assume that the fact is that customers have just stop buying at the moment and quite rightly so. IF no other competitor to Citrix posted a brilliant profit, then it would be safe to assume that everyone is in a little trouble, and as businesses should, they need to cut costs, and this is what Citrix have chosen to do. If we hear Provision/ Quest Networks or similar vendors are cutting jobs, will there be as much hype about them?


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Hey Brian, I want to apologize for my earlier comment.  Effects of too much cold medicine and not enough sleep.


Just get tired of hearing negative things about Citrix on your site.  Citrix is a major part of my deployment packages and having large negatives such as posting major layoffs can hurt my business.  Also my SMB clients often can't afford the vmware solution, so if they hear that they are more "financially balanced" when they haven't published layoffs at the same time as citrix could potentially hurt my clients that view your site.


Again, sorry if I offended anyone with my offhand comments.


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Hey Brian,


Are you hoping that VMware will announce some layoffs soon ? Hope I misundersood your comments ...


I had to go through the Citrix grinding machine yesterday and I came out with my job.


But it wasn't pretty seeing off colleagues ...


A Citrite


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@John, I think you misunderstood Mr. Stucco. It's only me who gets hummers on the side. This offer is not for everyone.


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@Warren The Citrix layoffs are not a result of customers not buying products. If you look at their income statements and balance sheets, you'll see that there was good revenue growth from Q4 year to year.  The problem has more to do spending, which shrinks the operating margins.


Many things are risky in business and when a company invests in initiatives that don't pan out as projected down the road, these types of restructurings can happen, unfortunately.


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