OpenText cut 2% of its workforce, roughly 400 jobs, as part of a three-year cost plan. The stock is down 25% from last year despite a recent bounce.
Alpha Score of 47 reflects weak overall profile with weak momentum, moderate value, weak quality, moderate sentiment.
OpenText has laid off two percent of its global workforce, the Kitchener-Waterloo information management company confirmed to BetaKit. The cuts follow a round in March that eliminated four percent of staff.
Employees began posting on social media and message boards this week that they had been let go or were looking for work. OpenText's website lists headcount above 20,000, meaning the reduction affects roughly 400 people.
A company spokesperson said the changes were part of "ongoing organizational planning." The statement added: "These decisions are never easy, and we are committed to supporting every impacted colleague through the transition. In Canada, where we are headquartered, the changes were minimal with our employee base here growing six percent over the past year as we continue to invest in the region."
One person affected by the earlier round of cuts told BetaKit that "the amount of knowledge loss is unbelievable."
OpenText is in the middle of a three-year "business optimization plan" aimed at controlling costs. The plan has included selling off non-core businesses to pay down debt and a series of workforce reductions: 1,200 employees in 2024, another 1,600 in May 2025, and roughly 880 this past March.
Founded in 1991, OpenText sells cloud-based information management tools and competes with IBM, Abbyy, and Hyland. The stock trades on the Toronto Stock Exchange under $OTEX. It was at $33.07 before Wednesday's open, up from recent lows but still down nearly 25 percent from a year ago.
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