Citrix quietly downsizes as it struggles to get legacy customers to adopt cloud services
The Register is reporting that Citrix is quietly laying off staff in California, North Carolina, and Florida as it grapples with revenue gaps associated with sluggish cloud sales. The report indicates that Citrix is struggling to get customers to transition from its legacy software licensing to new cloud-based subscription plans.
The Lowdown: The exact nature of the layoffs is unclear as Citrix is not formally commenting and no downsizing notices are on file in California, as required by state law. Channelnomics sources confirm the layoffs, but could not specify the number of pink slips or the nature of the downsizing.
The Details: According to the Register, Manoj Raisinghani, vice president of product marketing for networking, analytics, and security, as well as two of his team members, was let go last week. Additionally, the Register indicated that Christine Harkin, senior director of business strategy, and her team of eight were also laid off.
The Impact: The precise impact of the layoffs is difficult to quantify given the scope and nature are unclear. Like other vendors transitioning to the cloud, revenue gaps incurred in the transition often cause fiscal disruptions. If this is the case at Citrix, the layoffs are a speed bump in the road to the cloud.
Background: Struggles in cloud sales are inconsistent with Citrix’s previous assertion that partners are embracing the company’s cloud vision and strategy. At the Citrix Partner Summit in January, channel chief Craig Stilwell said 850 new partners are transacting Citrix products and sales have increased 14 percent. While he was not speaking directly to cloud products, the emphasis is on those offerings.