OpenText Corp., a Waterloo-based software giant, will cut about 1,200 jobs as part of a “business optimization” plan aimed at boosting productivity, reducing costs, and funding growth in cloud, security, and artificial intelligence. CEO Mark Barrenechea said the layoffs—roughly 5% of the company’s workforce—will incur one-time costs of $60 million but generate an estimated $150 million in annual savings.

The restructuring will also see the creation of 800 new roles in sales, professional services, and engineering under “OpenText 3.0 — Information Reimagined,” a three-year strategy to accelerate automation, AI-driven business transformation, and secure global information management.

While OpenText reported US$1.4 billion in quarterly revenue (up 16% year-over-year) and US$98.3 million in profit, analysts note the changes signal short-term operational challenges. The shift follows the $2.3 billion divestment of its AMC business and ongoing efforts to streamline operations.

For the Canadian tech sector, OpenText’s layoffs reflect broader industry trends of workforce realignment to prioritize emerging technologies. Though some Canadian roles may be lost, the planned hiring in engineering and AI suggests new opportunities for skilled workers in the country’s growing digital economy.

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Tara Deschamps’s original article, “Waterloo software firm OpenText cuts 1,200 jobs as part of business optimization plan” was published in CBC News on July 4, 2025. Read the Full CBC News story.