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In addition to the 15% job cuts, the content management vendor plans to close and consolidate offices to save even more money.
October 16, 2006
1 Min Read
Open Text Corp., a content management software maker, said Monday it would cut more than 500 jobs as part of its acquisition of Hummingbird Ltd.
The Canadian company said it would reduce the combined workforce of 3,500 by 15 percent, in order to eliminate redundant positions and jobs that do not fit the company's "strategic focus." In addition, Open Text said it planned to close and consolidate offices. Details of the closures and layoffs were still being worked out, and the company expected to finish the planning by the second quarter of fiscal 2007. "The changes we're making involve some tough decisions," John Shackleton, president and chief executive of Open Text, said in a statement. "Unfortunately, this is necessary to eliminate the redundancies that invariably come when turning two companies into one." In absorbing Hummingbird, Open Text is organizing its products and services into groups focused on a half dozen industries, legal, financial services, energy, pharmaceuticals, retail, manufacturing, and media and entertainment. Open Text completed the acquisition this month. The deal, which was announced in August, was valued at $489 million.
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