Citrix Systems has confirmed that it’s laying off employees in downtown Raleigh as part of a global reorganization.
Spokesman Eric Armstrong said the software company is “rebalancing investments and winding down certain products” as it transitions to a “subscription/cloud-based-business model.”
Armstrong would not say how many employees in Raleigh had lost their jobs “out of respect for those impacted.”
In December, Citrix announced plans to hire 400 people in Raleigh and make a $5 million capital investment in the area over the next five years, making it eligible for a $5.7 million state job development grant. At the time, the company said it had more than 900 employees in Raleigh. Armstrong said Citrix has not yet received any grant benefits.
He added that it was “too early” to tell whether Citrix will be able to meet its commitment to 400 new hires. While Citrix will continue to do some hiring in Raleigh, “specific numbers and timing depends on customer adoption of our cloud offerings,” Armstrong said.
When Citrix announced its plans to move locations to Raleigh in 2012, it committed to expand from 130 workers to nearly 470 workers within five years in exchange for more than $9 million in state and local incentives. The company had exceeded its job target by the time it moved into its 171,000-square-foot offices in fall 2014.
Citrix expects $60 million to $100 million in pretax restructuring charges, including $55 million to $70 million in severance costs, according to a filing with the Securities and Exchange Commission. It also reported that the restructuring would be done in the fourth quarter and completed during fiscal year 2018.
Shares of Citrix closed at $78.30 down 21 cents.