According to a source at the company, rumours of redundancies at Avaya are due to take effect, as it is reportedly in the process of making a “significant portion” of its UK workforce redundant.
Following a round of US job cuts, the layoffs are now spreading across Avaya’s regions, with reports of significant downsizings across Europe and the Middle East.
Now, according to the source to CX Today, it seems it is the UK office’s turn, with the delay seemingly due to the country’s more extensive redundancy process.
“I suspect what we are seeing in the UK/EU is bringing that region into alignment with the rest of the company,”
Zeus Kerravala, Principal Analyst at ZK Research, said following the news.
The news comes amid global layoffs as Avaya restructures its business under new CEO Patrick Dennis, who took over from Alan Masarek under the auspices of continuing the work of steadying the company’s finances.
Avaya’s Issues
Avaya is unfortunately a company that has had some of its biggest announcements over the past two years be of layoffs and bankruptcy.
In February 2023, the company filed for bankruptcy. Mere months later in May 2023, the company’s fortunes turned around as they exited bankruptcy proceedings, its second in five years.
During this period, Avaya gained approval for its pre-packaged plan to repay creditors and rearrange its bills.
In doing so, the vendor chopped its debts down from $3.4 billion to $800 million, now due in 2028.
What followed was a raft of cost-cutting measures as the UC company aimed at meeting this ambitious target.
In summer of 2024, the company began laying off three per cent of its workforce.
In November of the same year, more layoffs were announced, and in January 2025, more rumours surrounded the company with regard to layoffs.
Today’s announcement is believed to be part of the same raft of global layoffs announced in November.
How will UC Users be affected?
Investors can see layoffs as a positive step in a company’s journey back to black.
However, in terms of service, it’s rarely a positive announcement.
Last month, CX Today reported how previous rounds of layoffs had left some regions “threadbare“
Speaking at the time, Kerravala said: “The regions that support a tiny portion of the G1500 (Avaya’s top global 1500 customers) – like the Middle East – will likely see Avaya maintain a minimal presence. Or, perhaps, [the company may] leave the region completely with a remote presence.”
This restructuring aligns with Dennis’ vision of implementing a scaled-down version of the company, focusing on core markets and key customers to enhance profitability and operational efficiency.
This news of redundancies may see Avaya keep only the staff required to serve those 1,500 customers.
This could, however, potentially impact its ability to serve smaller businesses and maintain a diverse customer base across all regions. It could also lead to reduced support and a reduced focus on the needs of these customers in future product development.
Equally, employees in departments that do not directly support these customers—like marketing—could likely face redundancies, thus reining in future customer acquisition abilities.
Although it’s not known how many stand to be cut from the UK’s division, Kerravala points out that the country doesn’t hold many of Avaya’s G1500, exposing it to deeper cuts.
“I don’t believe a significant portion of the G1500 is in the UK, so my speculation is they will only leave a small group of people there to service what they need,” he said.
According to the latest UK government data, Avaya employs more than 250 staff in the country.
“While I do believe UK cuts were part of the plan put in place a year ago, what’s not clear is whether the company is tracking to the plan, ahead or behind,” Kerravala continued.
What Now for Avaya’s UK Customers?
Given the competition within the UC sphere and the company’s perennial battle with bankruptcy, it’s not entirely surprising Avaya is taking action.
Equally, given the long saga of redundancies, it seems that staff are expecting it too.
On a job loss forum website The Lay Off, the Avaya thread is alive with anonymous posts from supposed employees discussing the incoming cuts.
One such thread suggests the cuts could be coming on 31 March, with one user commenting: “I am one of the 80 people at risk. I have now come to terms with this and it is the best thing to happen to me (after spending 10+ years playing the Avaya game).”
Despite focusing on the big money clients, what is not known is how cut off its potential to increase revenues and further service customers in these regions may turn out.
Whether this will result in a reduced share of the market is unclear, but what is sure is that there are certainly other competitors waiting in the wings to capitalise from this come renewal time.
Alternatively, discuss this story in UC Today’s LinkedIn Community here.
