OpenText has unveiled plans to reduce its workforce by approximately 1,200 employees, constituting about 1.7% of its total workforce, as part of a broader business optimization strategy. This move is expected to incur nearly C$60 million ($44.01 million) in costs during the first quarter of fiscal 2025. However, OpenText anticipates achieving expense reductions totaling C$150 million throughout the fiscal year.

Headquartered in Ontario, Canada, OpenText intends to offset these layoffs by reinvesting C$50 million annually into the creation of 800 new positions in sales and engineering. This reinvestment is aimed at bolstering the company’s growth initiatives and fostering innovation, as detailed in a recent SEC filing.

The decision comes amidst broader trends in the tech industry, where over 100,900 job cuts have been reported across 356 companies this year alone, according to Layoffs.fyi, a website tracking employment trends in the sector.

OpenText’s restructuring efforts underscore its commitment to optimizing operational efficiency while strategically reallocating resources to drive future growth and innovation in the competitive global market.