Open Text Corporation (NASDAQ:OTEX) has announced a business optimization plan that includes reducing approximately 1,200 positions across the company, resulting in estimated annual cost savings of $200 million.

To align with its growth and innovation strategies, Open Text will reinvest about $50 million annually to create approximately 800 new roles in Sales, Professional Services, and Engineering.

The plan is expected to cut the overall workforce by 1.7% to around 23,000 employees by the first quarter of fiscal year 2025.

The company anticipates incurring around $60 million in restructuring charges, which will be recognized primarily in the first quarter of fiscal 2025.

When fully implemented, the business optimization plan will result in net savings of approximately $150 million in fiscal 2025.