Canadian enterprise software firm OpenText is cutting 1,600 jobs as part of an aggressive pivot to artificial intelligence, making AI adoption a “baseline expectation” for all employees. The company confirmed the layoffs in internal emails from CEO Mark Barrenechea, obtained by BetaKit, while also announcing plans to hire back 1,000 roles in “key locations and high-impact functions.”
This move follows a previous round of cuts in July 2024, which saw 1,200 jobs eliminated and 800 new roles created. In total, OpenText’s ongoing “business optimization plan” has resulted in a net reduction of 2,000 positions. The company currently employs around 23,000 people globally, including over 3,000 in Canada.
Barrenechea has positioned AI at the heart of OpenText’s future, calling it a “step function to reduce expenses.”
The company conducted a “deep analysis” to identify roles replaceable by AI and outlined a 10-point internal mandate:
- AI proficiency is now required for new hires
- Performance reviews will include AI adoption metrics
- Employees must justify why AI can’t do a task before requesting resources
- Staff are expected to learn AI prompting and programming in English
“AI will totally change OpenText, our work, our customers, our lives,” Barrenechea wrote.
The strategy mirrors recent moves by Shopify, where leadership has similarly mandated that employees prove AI can't perform a task before requesting headcount. These shifts reflect a broader trend across tech firms in using AI not only to drive innovation, but also to restructure workforces.
OpenText expects to save between $490 million and $550 million USD annually through this optimization strategy. The company recently reported a 13% year-over-year revenue decline, attributed largely to its divestment from the mainframe unit of Micro Focus International, which it acquired. It also noted challenges from U.S. tariffs and reduced government spending.
Despite headwinds, OpenText remains committed to an AI-first transformation. “We are all in,” Barrenechea emphasized.
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