Avaya Layoffs – Is Avaya laying off 500 employees?

Avaya LLC, known as Avaya, is an American multinational technology firm. It offers cloud communication and workstream collaboration services. On May 1, 2023, Avaya Holdings Corp. finished its financial restructuring. It emerged from bankruptcy and was acquired by its former creditors as a private firm, Avaya LLC.

Is Avaya layoffs 500 employees? Because Avaya experienced a difficult year in 2022. That year was marked by missed earnings projections, loan deal collapses, a new CEO, global layoffs, and a stock price drop to below 30 cents per share.

Avaya had implemented cost-cutting measures, including an undefined number of layoffs in 2022. No layoffs were reported by the company recently.

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Avaya’s financial challenges

In recent years, Avaya has been changing. The company stated that it still needs to meet its revenue target for May 2022. It was followed by a significant profit shortfall, with revenue falling 20% during the company’s third quarter of 2022.

The business then announced the decision to replace Jim Chirico, its CEO since 2018. Masarek was appointed president and CEO of Vonage on August 1, 2022, following his six-year tenure as CEO.

Masarek aimed to position Avaya for future growth. He focused on the company’s huge base of large enterprise clients, combined with a major cloud transformation for the company.

Avaya generated $577 million in revenue for the third quarter of 2022, which concluded on June 30, 2022. The number was down 20% year over year. Masarek defined income loss as “operational and execution issues” in the context of a turbulent economy.

Avaya initiated layoffs. However, the company failed to file a Worker Adjustment and Retraining Notification, or WARN, in North Carolina. This was according to a representative for the state’s Department of Commerce at the time. A business must file a WARN notice if it intends to lay off at least 500 people, according to federal law.

Avaya relocated its headquarters to Durham, North Carolina, in 2020 from Santa Clara, California. In 2021, the company employed over 8,000 people around the globe.

Avaya layoffs in 2022

Avaya, the unified communications behemoth, announced cost-cutting measures in 2022. It includes an undefined number of layoffs. On September 7, 2022, Avaya announced the latest. 

A wave of layoffs. Sources contacted Avaya’s Australian office, but they did not respond at that time.

Avaya CEO Alan Masarek addressed the layoffs in an email. He stated, “As previously reported, lowering our costs included a reduction in our workforce. It is essential to position Avaya as a more flexible and innovative organization. It is vital to match Avaya’s cost structure with our contractual, recurring revenue business model.”

Masarek, who joined Avaya in August 2022, stated that the company will “reduce its effect on customers with respect to sales and support. The business will remain dedicated to our long-range innovation and product development plans.”

“We are dedicated to providing our customers with excellent communications solutions and support. Also, we will treat the affected employees with the highest dignity and respect,” Masarek added.

Avaya stated in a July 2022 news statement that it would initiate “significant” cost-cutting actions. This totaled $225 million to $250 million during the company’s final fiscal quarter of 2022.

The layoffs announced are likely to help the company achieve net savings at the higher end of the $250 million revealed by Avaya.

The CEO’s positive note

In 2023, Avaya Holdings filed for bankruptcy to restructure its company and debts. It needed to be clearer what the future held for the weak vendor.

As it turned out, the restructuring was a success. Later, Avaya plans to re-engage with its clients through a revived focus and product direction for its enterprise communications and contact center services. Avaya technically exited bankruptcy on May 1, 2023. It had decreased its debt load and emerged with a capital structure that provides about $650 million in liquidity.

Avaya CEO Alan Masarek said, “Unequivocally and undeniably, Avaya is back.” He said this during the company’s Engage event on June 19, 2023.

Avaya’s bankruptcy caused alarm among some of the company’s clients. During his address, Masarek made it clear that the business is now financially stable. According to Masarek, Avaya achieved an outstanding and unusual result through financial restructuring.

He declared, “We’ve moved from financial weakness to real financial strength.” “We’ve removed the vast majority of our debt and recapitalized the business with a great deal of cash. Also, we have a cost structure that is right-sized to ensure we are a cash generator out of the gate.”

He stressed that the financial reorganization was “putting a big green check mark on it and that it’s behind us. It’s done.”

Masarek stated that his company’s North Star is now the Avaya Experience Platform (AEP). It is a cloud-based contact center solution. Although he sees the future in the cloud, Avaya remains dedicated to its on-premises call center and communication systems.


The CEO gave an overview of Avaya’s “innovation without disruption” product approach. He stated that, as the world moves to the cloud, clients want to innovate. It will add new capabilities, such as AI and chatbots, to their existing products without fully replacing them. Avaya intends to meet customers where they are in their transition from on-premise to cloud solutions.

Avaya’s future still needs to be discovered. But Masarek is optimistic that the past year’s disturbances, especially the financial difficulties, are now behind the company.

On May 8, 2024, Avaya announced the acquisition of Edify. This acquisition integrates powerful, AI-powered customer journey orchestration and workflow features right into the Avaya Experience Platform. It also offers top-tier technical expertise to Avaya’s engineering team.

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