Waterloo software firm OpenText cuts 1,200 jobs as part of business optimization plan [Video]

OpenText Corp.’s chief executive says the company plans to shed about 1,200 roles as part of a business optimization plan.

In an open letter to stakeholders released Wednesday, Mark Barrenechea describes the cuts as a way of “placing the right talent in the right locations of our business, funding growth and innovations, and completing these objectives with higher productivity, lower cost, and expanded margin.”

The Waterloo, Ont.-based software company did not immediately respond to questions about the extent and nature of the layoff, but data provided by LSEG Data & Analytics showed OpenText employed 24,100 staff last June.

Barrenechea’s note said the job reduction will come with one-time costs of about $60 million but will generate about $150 million in savings per year.

The move will be combined with plans to create 800 new roles in sales, professional services and engineering and comes as the company is ushering in a …