Citrix Systems plans layoffs affecting 700 full time employees and 200 contractors as part of an unexpected restructuring plan announced with fourth-quarter earnings on Wednesday.

The move, aimed at improving efficiency, comes as the virtualization company reports revenue gains of 6 percent for the fourth quarter, to $851 million compared with $802 million for the fourth quarter a year ago.

"I'm proud of our 2014 performance, but we're not satisfied," Citrix CEO Mark Templeton said in a statement, adding that the restructuring would give the company "a more focused organizational footprint" as it pursues a strategy built on software-defined enterprise products.

The Citrix layoffs will happen in conjunction with some products being eliminated — either by sunsetting or by rolling them into platforms as features.

For instance, the company's AppDNA, which converts physical-network apps into virtual-network form, will no longer be standalone. It's becoming a feature in XenApp Platinum, Citrix's virtualization tool for Windows apps and operating systems.

Likewise, the company's VDI-in-a-Box, a small-business software package for desktop virtualization, is being eliminated. It will be replaced by a "simpler and more price-competitive version for VDI that we have coming," Templeton said on a call with investors.

The shifts seem geared at moving Citrix's product line toward virtualization platforms that combine dozens of applications and appliances. "SDx continues to be the standout," Templeton said, noting growth of more than 25 percent for products related to software-defined infrastructure.

For the quarter ended in December, Citrix reported a net profit of $95 million, or 58 cents per share — down 22 percent from same quarter year prior. Adjusted earnings of $1.10 per share beat the Thompson Reuters estimate of $1.02. Shares rose as much as 5 percent in after-hours trading.

Citrix, headquartered in Fort Lauderdale, Fla., plans to consolidate its leased office facilities as part of the restructuring, though additional details were not disclosed. The company had 9,166 employees worldwide a year ago, according to an SEC filing.

Additional reporting by Craig Matsumoto.