WATERLOO, Ont. — Open Text Corp. says it is temporarily reducing the salaries of its executives, senior leadership, and other employees, and cutting discretionary spending, due to the economic impact of COVID-19 on its business.
The Waterloo, Ont.-based technology company says 95 per cent of its global workforce has been working from home because of the pandemic and it will consolidate certain real estate facilities to further streamline its operations.
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It estimates that the restructuring program will cost from US$80 million to US$100 million by the time it’s completed at the end of its 2021 financial year, which begins July 1.
The company, which operates in multiple countries and reports in U.S. currency, announced the restructuring with its financial results from the fiscal third quarter ended March 31.
The quarter included a 13.3 per cent increase in revenue, which rose to $814.7 million from $719.1 million.
However, Open Text’s net income was down 64.3 per cent to $26.0 million or 10 cents per share, and adjusted earnings were down 4.7 per cent to 61 cents per share.
This report by The Canadian Press was first published April 30, 2020.
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