Following a troubling industry trend, Cloud Software Group is laying off 15% of the organization’s workforce. CSG is the new parent company of the newly-merged Citrix, a cloud computing and virtualization company, and Tibco, a business intelligence technology vendor. In September 2022, fresh from a six-year stint with Broadcom, Tom Krause took the reins as chief executive officer from Citrix CEO Robert Calderoni, knowing full well that there were going to be tough decisions to make.
In a blog post, Krause claimed that the layoffs are designed to eliminate redundant positions, streamline the company, and free-up cash to invest in products, technology, and acquisitions. He also used the post to thank the affected employees for their contributions, and to assure them that the firings were “practical business decisions designed to strengthen the combined companies.” While the CEO expressed remorse over the layoffs, many eliminated employees expressed their frustration on LinkedIn and other social media sites.
Krause is not the only CEO making tough decisions; tech industry leaders at companies such as Salesforce, Microsoft, and Alphabet have all made significant cutbacks in their workforces. Despite the challenging start to his tenure, he remains confident in the future of all the organizations under the CSG umbrella.