Citrix and Radware Reportedly to Withdraw from the Chinese Market
According to a report by Leiphone on May 6th, Citrix, a cloud computing and virtualization technology company, and Radware, a provider of cybersecurity and application delivery products, have downsized their teams in China considerably and may even exit the market entirely. In 2017, Citrix had almost one hundred employees in China; however, presently only five people are left to complete the remaining work. Similarly, Radware’s Chinese team initially consisted of over thirty members but now has only ten remaining.
Citrix is a high-tech enterprise that specializes in cloud computing, virtualization technology, virtual desktops, and remote access technology. It was founded in 1989 and has its headquarters located in Florida, US. On the other hand, Radware provides cybersecurity and application delivery products for physical, cloud and software-defined data centers. Established in 1997, it is a leading global provider with its global headquarters based in Tel Aviv-Yafo, Israel. Both companies have been operating successfully within the Chinese market for over two decades.
Citrix has reportedly reduced its global market and sales teams since being acquired by investment firms Vista Equity Partners and Evergreen Coast Capital in September of last year. The acquisition led to the formation of Cloud Software Group, which also included Tibco. As a result of business operation adjustments, Cloud Software Group laid off thousands of employees on January 10th across various positions such as sales, marketing, and product development. This information was reported by TechTarget citing insider sources.
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In recent years, many companies have withdrawn from the Chinese market. For instance, in February of this year, Teradata, a data warehouse software giant was rumored to be exiting China. Similarly, customer relationship management SaaS provider Salesforce announced the dissolution of its China team and closure of its Hong Kong office in August 2022. In November 2021, business intelligence software company Tableau declared that it would terminate all direct business activities in mainland China and existing partnerships with mainland China as of January 31st, 2022. While different companies may have varying reasons for withdrawal from the Chinese market, security control measures implemented by China are confirmed to be one of the significant influencing factors.