OpenText Layoffs 2026: What’s Happening & Severance Rights in Canada

OpenText has reportedly cut a significant number of jobs in March 2026.

Some Reddit users claim the latest workforce reduction at the Waterloo-based tech company is part of a “yearly spring cleaning” where “there’s a 5% layoff almost every year.”

Samfiru Tumarkin LLP is working to determine the exact number of OpenText employees in Canada that have been let go.

This page explains:

• What’s happening with layoffs at OpenText
• Whether a layoff at OpenText is permanent
• How much severance OpenText employees in Canada may be owed
• What to do before signing a severance offer

OpenText Layoffs: A Timeline of Recent Job Cuts

OpenText has restructured in recent years, with job cuts that have affected teams linked to Canadian operations.

• May 2025: OpenText is reportedly slashing 1,600 jobs — expanding the “business optimization plan” it outlined in July 2024.
• July 2024: OpenText announces the elimination of approximately 1,200 jobs as part of a “Business Optimization Plan,” or ‘OpenText 3.0.”

Is a Layoff at OpenText Temporary or Permanent?

For non-unionized employees at OpenText, a layoff is almost always treated as a termination without cause, even if the following language is used:

• “Restructuring”
• “Reorganization”
• “Transformation”
• “Temporary layoff”

Unless your employment contract explicitly allows for OpenText to temporarily lay you off, the company can’t place you on indefinite layoff without terminating your employment — meaning they must provide full severance pay.

Severance Pay for OpenText Staff

In Canada, non-unionized employees, including those at OpenText, are often owed far more severance pay than what’s outlined in their initial offer.

Severance is based on common law entitlements, not just minimum standards. Factors include:

• Age
• Length of service
• Position and seniority
• Availability of comparable jobs

In many cases, OpenText employees in Canada can be owed up to 24 months of compensation.

Severance may include:

• Base salary
• Continued benefits
• Bonus and incentive compensation
• Stock, equity, or RRSP contributions (where applicable)
• Vacation pay
• Other earned compensation

First offers often:

• Cover only minimum entitlements
• Exclude bonuses or incentives
• Impose short signing deadlines
• Undervalue long-service or senior employees

Severance Offers: Common Problems

Canadian employees affected by layoffs frequently report issues such as:

• Severance offers far below legal entitlements
• Missing or unclear compensation breakdowns
• Benefits cut off too early
• Bonuses excluded without justification
• “Temporary layoff” language used improperly
• Pressure to sign within 24–48 hours

Wrongful Dismissal and OpenText Layoffs

A wrongful dismissal occurs when employers, including OpenText, fail to provide full severance required under common law.

You may have a claim if:

• Your severance offer is too low
• A termination clause isn’t enforceable
• You were pressured to accept your severance offer on the spot
• Bonuses or benefits were excluded from your severance package
• You were terminated while on medical, parental, or disability leave
• OpenText labelled your termination a “temporary layoff” without contractual authority

Large-scale layoffs at OpenText don’t reduce their legal obligations in Canada.

Laid Off at OpenText? Next Steps

If you’ve been laid off at OpenText:

1. Don’t sign your severance offer immediately
2. Gather your employment contract, bonus plans, and benefits information
3. Use the Severance Pay Calculator to double-check your entitlements
4. Keep records of your role, compensation, and length of service
5. Speak with an employment lawyer before agreeing to anything

OpenText Layoffs: Frequently Asked Questions

How much severance can employees at OpenText receive?

Up to 24 months — depending on age, service, and position.

Are OpenText layoffs permanent?

For non-unionized employees, yes. A layoff is typically a termination.

Does OpenText have to include bonuses in severance?

Often yes — especially if bonuses were a regular part of compensation.

Can OpenText terminate employees on leave?

This can raise serious wrongful dismissal and human rights issues.

Can employment lawyers represent unionized OpenText staff?

No. Unionized employees at OpenText must go through their union.

Lost Your Job? Get Help Now

If OpenText has laid you off, or offered a severance/buyout package, don’t do anything before seeking legal advice.

Samfiru Tumarkin LLP, one of Canada’s most reviewed employment law firms, has helped more than 50,000 Canadians secure the compensation they’re legally entitled to.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and SHOULD NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.