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The CEO’s initial email about Q1 results includes a paragraph about the ongoing Enterprise Assessment. He will share those results in February.
OpenText is failing. Our debt is crushing. The debt was restructured and OT has until 2028 to pay or divest that debt.
This assessment is being done to achieve that goal. McKinsey has been engaged to assist with this assessment.
Between now and Feb/Mar: expect projects to be cancelled or to encounter unexpected and unexpected delays. Expect continued communication about the continued consolidation of products into Core and non Core.
In Feb/Mar expect a massive reorganization of the company. This includes:
Up to 25% layoff. This number will appear smaller because much of it will come through RTO mandates and other policies designed to encourage people to quit.
A buyout is possible due to our way of following the big tech companies, but is not guaranteed. If you’re offered you should take it.
Most or all remote employees will be told to relocate to an office or be let go at this phase. The time frame and notice will be short. There will be no financial assistance.
All non-core products will be spun off into semi-autonomous business units. Roughly half of the remaining employees will be shuffled into one of these.
The fire sale will begin. OT will offload these products for a song with as much debt attached as they can. If you’re on non-core product, you will have a new business daddy in calendar 2028. The sole goal is to get rid of the debt and the ongoing expenses. A few products will be spun into subsidiaries, loaded with debt, and declare bankruptcy.
The remaining 30-40% of employees who are in core products will face massive budget crunches, hiring freezes, and more. If enough debt can be divested, it’s possible that OT will recover.
The more likely result is that, at some point during the fire sale, OT core will hit a point it’s attractive to private equity. If you think working for OT is bad, you haven’t seen anything.
The private equity grab will happen sometime between late 2028 and early 2030. If somehow OT makes it to 2030 you may be safe.
TL;DR: OT as you know it will cease to exist in the coming year. You have three or four months before the process begins. At least half of your colleagues will no longer be here by the end of 2028.
You have a year before private equity becomes a real concern. You have no more than three before OT doesn’t exist at all.
Find. A. New. Job.