OpenText has replaced CEO and CTO Mark Barrenechea, initiating a search for a new CEO and considering the sale of non-core assets. In the interim, James McGourlay, executive vice president of international sales, steps in as CEO, while chief product officer Savinay Berry takes over as CTO. Chairman and former CEO P. Thomas Jenkins is now chief strategy officer and will lead the executive search committee.
This transition follows CFO Chadwick Westlake’s exit to become CEO of Equitable Bank after the sudden passing of Andrew Moor. OpenText plans to work with financial advisors to explore options that focus on its core Information Management for AI business and potentially use capital from non-core assets, though results are not guaranteed.
This shift occurs after a 10 percent revenue drop in the recent fiscal year, attributed partially to the divestment of its app modernization and connectivity unit. Despite decreased organic growth, analyst Richard Tse notes signs of stabilization, which previously led to a stock price increase. However, leadership changes reflect challenges in leveraging the company’s diverse product lineup under Barrenechea, and simplification might foster collective growth. Following the restructuring, OpenText’s stock saw a short-lived 10 percent increase before falling.
The company is pursuing a three-year optimization strategy to cut costs, which began with a reduction of 1,200 employees last year and 1,600 more recently as OpenText focuses on AI. McGourlay expressed confidence in OpenText’s innovative capabilities within Information Management for AI, ensuring customer-centric solutions.
Founded in 1991, OpenText offers cloud-based information management solutions and competes with companies like IBM, ABBYY, and Hyland, evolving to include cloud and AI services like cybersecurity.