Citrix Plans Layoffs After Losses

Citrix Systems plans layoffs after seeing lower income last year, but the maker of “work anywhere” software increased revenue 8 percent in 2014, the company announced Wednesday.

About 700 full-time and 200 contractor positions are expected to be affected, and some offices consolidated, Citrix said. It was not immediately clear whether Citrix’s 1,600 employees in Fort Lauderdale would be affected. The company has employees worldwide.

The restructuring is expected to result in annual savings of $90 million to $100 million, the company said.

Citrix said it expects to incur charges of $40 million to $45 million related to employee severance and about $9 million to $10 million related to the consolidation of leased offices during 2015.

The company reported lower net income on increased revenues for the year and fourth quarter.

Net income was $252 million for 2014 compared with $340 million for the previous year. Annual revenue was $3.14 billion compared with $2.92 billion for 2013, an 8 percent increase.

For the fourth quarter, net income was $95 million compared with $139 million in the same quarter in 2013. Citrix saw 6 percent growth in quarterly revenue, $851 million compared with $802 million during the same period a year ago.

This article appeared in print in the January 29th, 2015 edition of Hamodia.