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Globe and Mail
8 hours ago
- Business
- Globe and Mail
AI adoption is upending the job market for entry-level workers
In a call with investors last month, Open Text Corp. OTEX-T CEO Mark J. Barrenechea outlined a sweeping corporate realignment that will eliminate hundreds of jobs and redefine the roles the Canadian tech company is willing to fill. The software company is fully committed to an 'AI-first strategy' that will change staffing, spending and product development, Mr. Barrenechea said. Roles that can be handled by artificial intelligence will no longer be backfilled, and future hires will be required to bring AI fluency to the table. 'Our digital worker approach is, let AI and machines do the work. This is a low-cost and limited workforce that will benefit all organizations in all industries,' he said. 'We can take human tasks that require dozens of screens and days of work and reduce that down to a dialogue box in minutes.' The move follows a similar announcement in April from Shopify Inc. SHOP-T chief executive officer CEO Tobi Lütke. In a memo to employees, he said using AI effectively 'is now a fundamental expectation of everyone at Shopify,' and it should be the first consideration before turning to new hires. 'Before asking for more Headcount and resources, teams must demonstrate why they cannot get what they want done using AI,' he wrote. 'What would this area look like if autonomous AI agents were already part of the team? This question can lead to really fun discussions and projects.' Is AI dulling critical-thinking skills? As tech companies court students, educators weigh the risks The two tech companies, which did not respond to requests for comment about their AI strategies, represent the most high-profile examples of Canadian firms scaling back junior hiring amid a broader corporate shift. Around the world, major employers are increasingly turning to artificial intelligence to perform a growing share of work – eliminating some positions while raising the bar for new recruits. In Canada, the shift is adding pressure to one of the most challenging youth labour markets in decades. Statistics Canada recently reported that 14.6 per cent of people in their late twenties were not in employment, education or training in the 2023/24 academic year, an increase of 1.8 percentage points from the previous year that may signal 'higher risks of social disconnection and exclusion among youth.' And among postsecondary graduates under the age of 25, the unemployment rate was 11.2 per cent in the first quarter of 2025 – the worst start to a year since at least 2005, excluding the pandemic. For recent graduates and early-career professionals, the spread of AI can mean fewer stepping-stone jobs and higher-level responsibilities, experts say. Travis O'Rourke, president of recruitment firm Hays Canada, said the growing role of AI adds new complexity to a youth labour market being shaped by steep budget cuts and immigration-driven competition. And amid a disruptive trade war with the United States, many employers are delaying hiring at all levels. Mr. O'Rourke said companies are focused on cutting repeatable or administrative roles while raising expectations for incoming workers. But that comes with long-term risks, he said. 'What happens when junior developers don't get trained? How do you become intermediate if you were never junior?' Mr. O'Rourke said AI's effects on junior-level labour are prompting both recruiters and educators to reassess how young people gain experience and enter the work force. For young Canadians, the toughest job market in decades is threatening their financial futures How AI is infiltrating the hiring process for recruiters and job seekers Fabian Braesemann, a researcher at the University of Oxford, said the loss of junior roles means losing the hands-on experience needed to build 'judgment and fluency.' 'Many entry-level workers are no longer asked to produce first drafts – they're asked to orchestrate the tools that do it,' said Dr. Braesemann, who studies the effects of generative AI on global labour markets. 'That may sound empowering, but it removes a key stage of learning.' Skipping that foundational phase could leave workers without the mental rigour or domain knowledge needed to advance, he said. 'You might get good at judging outputs,' he said in an interview, 'but not at structured thinking.' That could also hinder organizations if entire cohorts of workers rise through the ranks without ever building a baseline understanding of how things are done. History is filled with examples of technologies rendering human labour obsolete or redundant, he said. But the speed with which AI is improving and spreading threatens workers' ability to withstand and thrive in a period of rapid disruption. 'Critically thinking about information you receive and being able to produce something that is of value – taking the latest technologies into consideration – I think it's a skill that needs to be put to the surface even more,' he said. At the University of Waterloo, which places more than 25,000 co-op students annually, administrators have a clear view of how AI is reshaping entry-level work. The school's employer network spans startups to multinationals, offering a broad glimpse into evolving job expectations. 'We are seeing that there is a softening in the market for what might have been traditional entry-level jobs,' said Vivek Goel, the university's president. 'But the roles aren't vanishing – they're changing.' Co-op students are being hired to review AI-generated content – a shift from producing work to verifying it. Dr. Goel said many employers now expect students to be comfortable with generative tools and able to intervene when the output isn't right. 'What we're really preparing students for now is working in teams that include both people and AI agents,' he said. 'And someone has to manage that.' For universities, that means doubling down on the human skills AI can't easily replicate, such as critical thinking, context awareness, and the ability to work with ambiguity. 'I think it's less about adapting our programs and more about returning to what postsecondary education was always meant to do,' Dr. Goel said. 'Because you can't prepare graduates for specific roles – those are changing too fast. But you can prepare them to be ready for change.'
Cision Canada
22-05-2025
- Business
- Cision Canada
OpenText Receives 2025 SAP® Pinnacle Award in the Partner Solution Success Category
WATERLOO, ON, May 22, 2025 /CNW/ -- OpenText today announced that it received a 2025 SAP ® Pinnacle Award in the Partner Solution Success category, which recognizes its outstanding contributions as an SAP partner. SAP presents these awards annually to the top partners that have excelled in developing and growing their partnership with SAP and helping customers run better. Winners and finalists in 24 categories were chosen based on recommendations from SAP, customer feedback, and performance indicators. "Our premier partner recognition program, the SAP Pinnacle Awards, reflects the outstanding performance and commitment of our partners to deliver customer value, exponential growth, and simplification. The winning partners of this award are recognized for their successful alignment with SAP's business strategy, delivering innovative AI and cloud services and solutions to help businesses succeed," said Christian Klein, CEO of SAP SE. "OpenText's continued leadership in SAP solution extensions underscores our role as a trusted partner in helping organizations optimize their SAP investments," said Mark Barrenechea, CEO and CTO, OpenText. "Through our strong collaboration with SAP, we enable businesses to bring information governance to their business processes. Our suite of AI-first content management solutions enables customers to discover, prepare, move, and run their SAP business applications in the Cloud with predictable cost control and uninterrupted delivery. Our customers rely on OpenText SAP solution extensions to meet compliance standards for regulated industries and to establish a data migration & automation strategy that builds the required foundation for AI across structured and unstructured data. We are proud to have received this prestigious award and to be recognized with multiple regional SAP® Solution Extensions Partner Awards in 2025." OpenText solutions extensions for SAP focus on connecting information with SAP processes, people, and user interfaces. By seamlessly integrating content and data, organizations can enhance process efficiency, unlock new opportunities for digital transformation, while simultaneously controlling costs and reducing compliance risks. OpenText supports critical business processes such as Procure-to-Pay, Order-to-Cash, and Hire-to-Retire, while enabling transformation across all lines of business—including HR, Finance, Manufacturing, Asset Operations, Supply Chain, and Customer Experience. SAP Pinnacle Awards shine a spotlight on distinguished partners to acknowledge their dedication to teamwork, exceptional innovation, and capacity to help customers achieve their goals. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see for additional trademark information and notices. All other product and service names mentioned are the trademarks of their respective companies. About OpenText OpenText™ is the leading Information Management software and services company in the world. We help organizations solve complex global problems with a comprehensive suite of Business Clouds, Business AI, and Business Technology. For more information about OpenText (NASDAQ/TSX: OTEX), please visit us at Certain statements in this press release may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText's assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website ( Such social media channels may include the Company's or our CEO's blog, Twitter account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication.
Yahoo
22-05-2025
- Business
- Yahoo
OpenText Receives 2025 SAP® Pinnacle Award in the Partner Solution Success Category
WATERLOO, ON, May 22, 2025 /CNW/ -- OpenText today announced that it received a 2025 SAP® Pinnacle Award in the Partner Solution Success category, which recognizes its outstanding contributions as an SAP partner. SAP presents these awards annually to the top partners that have excelled in developing and growing their partnership with SAP and helping customers run better. Winners and finalists in 24 categories were chosen based on recommendations from SAP, customer feedback, and performance indicators. "Our premier partner recognition program, the SAP Pinnacle Awards, reflects the outstanding performance and commitment of our partners to deliver customer value, exponential growth, and simplification. The winning partners of this award are recognized for their successful alignment with SAP's business strategy, delivering innovative AI and cloud services and solutions to help businesses succeed," said Christian Klein, CEO of SAP SE. "OpenText's continued leadership in SAP solution extensions underscores our role as a trusted partner in helping organizations optimize their SAP investments," said Mark Barrenechea, CEO and CTO, OpenText. "Through our strong collaboration with SAP, we enable businesses to bring information governance to their business processes. Our suite of AI-first content management solutions enables customers to discover, prepare, move, and run their SAP business applications in the Cloud with predictable cost control and uninterrupted delivery. Our customers rely on OpenText SAP solution extensions to meet compliance standards for regulated industries and to establish a data migration & automation strategy that builds the required foundation for AI across structured and unstructured data. We are proud to have received this prestigious award and to be recognized with multiple regional SAP® Solution Extensions Partner Awards in 2025." OpenText solutions extensions for SAP focus on connecting information with SAP processes, people, and user interfaces. By seamlessly integrating content and data, organizations can enhance process efficiency, unlock new opportunities for digital transformation, while simultaneously controlling costs and reducing compliance risks. OpenText supports critical business processes such as Procure-to-Pay, Order-to-Cash, and Hire-to-Retire, while enabling transformation across all lines of business—including HR, Finance, Manufacturing, Asset Operations, Supply Chain, and Customer Experience. SAP Pinnacle Awards shine a spotlight on distinguished partners to acknowledge their dedication to teamwork, exceptional innovation, and capacity to help customers achieve their and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see for additional trademark information and notices. All other product and service names mentioned are the trademarks of their respective companies. About OpenTextOpenText™ is the leading Information Management software and services company in the world. We help organizations solve complex global problems with a comprehensive suite of Business Clouds, Business AI, and Business Technology. For more information about OpenText (NASDAQ/TSX: OTEX), please visit us at Connect with us:OpenText CEO Mark Barrenechea's blogTwitter | LinkedIn Certain statements in this press release may contain words considered forward-looking statements or information under applicable securities laws. These statements are based on OpenText's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which the company operates. These statements are subject to important assumptions, risks and uncertainties that are difficult to predict, and the actual outcome may be materially different. OpenText's assumptions, although considered reasonable by the company at the date of this press release, may prove to be inaccurate and consequently its actual results could differ materially from the expectations set out herein. For additional information with respect to risks and other factors which could occur, see OpenText's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC and other securities regulators. Readers are cautioned not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Unless otherwise required by applicable securities laws, OpenText disclaims any intention or obligations to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Further, readers should note that we may announce information using our website, press releases, securities law filings, public conference calls, webcasts and the social media channels identified on the Investors section of our website ( Such social media channels may include the Company's or our CEO's blog, Twitter account or LinkedIn account. The information posted through such channels may be material. Accordingly, readers should monitor such channels in addition to our other forms of communication. Copyright © 2025 OpenText. All Rights Reserved. Trademarks owned by OpenText. One or more patents may cover this product(s). For more information, please visit OTEX-G View original content to download multimedia: SOURCE Open Text Corporation View original content to download multimedia: Sign in to access your portfolio
Yahoo
07-02-2025
- Business
- Yahoo
Open Text Corp (OTEX) Q1 2025 Earnings Call Highlights: Exceeding Expectations Amidst Challenges
Revenue: $1.27 billion in Q1, within the range of $1.25 billion to $1.3 billion. Adjusted EBITDA: 35% in Q1, reflecting operational efficiency. Adjusted EPS: $0.93, exceeding expectations. Cloud Revenue: $457 million, up 1.3% year over year. Cloud Bookings: $133.5 million, up 10.3% year over year. ARR (Annual Recurring Revenue): $1.052 billion, down 1.1% when adjusted for divestiture. GAAP Net Income: $84.4 million, with a 32% diluted EPS. GAAP Gross Margin: 71.7%, up from 71.4% year over year. Non-GAAP Gross Margin: 75.8%, reflecting investments in AI and cloud infrastructure. Operating Cash Flow: Negative $77.8 million, impacted by onetime tax payment. Free Cash Flow: Negative $117.1 million in Q1. Net Renewal Rate (NRR): 94% for the cloud business. Share Buyback: 7.72 million shares repurchased at an average price of $30.43. Fiscal '25 Revenue Target: $5.3 billion to $5.4 billion. Fiscal '25 Free Cash Flow Target: $575 million to $625 million. Warning! GuruFocus has detected 3 Warning Signs with OTEX. Release Date: February 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Open Text Corp (NASDAQ:OTEX) exceeded expectations in adjusted EBITA and adjusted EPS for Q1 fiscal 2025. The company reported a 35% year-over-year growth in adjusted EBITA, showcasing sustained efficiency gains. Open Text Corp (NASDAQ:OTEX) achieved its largest Q1 of enterprise cloud bookings in history, up 10% year-over-year. The company reaffirmed its fiscal 2025 targets, projecting total revenues of $5.3 billion to $5.4 billion. Open Text Corp (NASDAQ:OTEX) is making strong investments in its enterprise and SMB go-to-market strategies, enhancing customer success and strategic partnerships. Q1 total revenue of $1.269 billion was down 11% year-over-year, or down 1.8% when adjusted for the AMC divestiture. The company reported negative $77.8 million in operating cash flows and negative $117.1 million in free cash flows for the quarter. Q2 is expected to be a tougher year-over-year comparison due to the large AMC contribution and license revenue from IP rights in the previous year. Cloud revenue growth was subdued in Q1, with only a 1.3% increase, reflecting typical seasonality. The company faces challenges in the developer segment, requiring further work to drive growth in this area. Q: Can you provide insights into the current demand environment and any shifts in deal activity? A: Mark Barrenechea, CEO, stated that the demand environment is stable despite global volatility. The company anticipates a stronger second half due to the upcoming release of Titanium X, their largest software and cloud release. They are also seeing increased demand for their new SMB platform and security offerings. Q: What gives you confidence in achieving your second-half targets? A: Barrenechea highlighted several factors: the on-track delivery of Titanium X, full sales force capacity, a 20% year-over-year increase in pipeline for the second half, and the internal deployment of AI tools to enhance sales efficiency. Q: How is Project Athena progressing, and what are the early results? A: Barrenechea explained that Project Athena is focused on developer productivity, with early feedback being positive. The project aims to generate applications on top of Open Text's API services, with the first production apps expected by April 2025. Q: Can you discuss the impact of AI and Microsoft Copilot on customer adoption patterns? A: Barrenechea noted that AI is becoming a standard feature, akin to a search button, with 15 aviators and over 100 agents integrated into Titanium X. The company is making steady progress in embedding AI across its offerings, which is expected to support bookings and cloud revenue growth. Q: What are the key drivers for cloud revenue growth in fiscal 2025? A: Barrenechea identified three main drivers: customer adoption of SaaS capabilities in Titanium X, revenue contributions from AI and aviators, and product-specific growth, particularly in security with XTR as a service. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
