OpenText completed its massive $5.8 billion acquisition Tuesday of fellow software and cybersecurity specialist Micro Focus, creating one of the world’s largest information management and security businesses.
However, OpenText said in a statement Tuesday that the company expects to “balance the combined company through an approximately 8 percent workforce reduction due to the acquisition of Micro Focus.” These employee layoffs will amount to “cost synergies of $400 million,” said the Waterloo, Canada-based company.
According to OpenText, the merger will create a workforce of approximately 25,000 professionals. Micro Focus has around 11,000 employees worldwide, while OpenText has around 14,000 total employees on a global basis.
