Avaya is in the process of making a “significant portion” of its UK workforce redundant, according to CX Today sources.
The move is likely part of the global layoffs that Avaya confirmed in November 2024.
At first, the US bared the brunt of the job cuts, yet they have spread rapidly, with reports of significant downsizings across Europe and the Middle East.
Last month, CX Today highlighted how the moves had – in places – left these regions “threadbare”.
Now, the UK is the layoffs’ latest victim, with the delay seemingly due to the country’s more extensive redundancy process.
Sharing his perspective, Zeus Kerravala, Principal Analyst at ZK Research, said: “I suspect what we are seeing in the UK/EU is bringing that region into alignment with the rest of the company.
Also, I don’t believe a significant portion of the G1500 (Avaya’s largest global 1,500 customers) is in the UK, so my speculation is they will only leave a small group of people there to service what they need.
That G1500 note is significant, as Avaya is restructuring its operations around these customers and prioritizing their business.
Such a process is punishing, as the company has served all businesses for decades, accumulating a deep install base. This includes organizations of all shapes and sizes, from 90+ of the Fortune 100 to SMBs.
Primarily, Avaya has delivered these customers on-premise contact center solutions alongside CCaaS, UCaaS, end-points, and various other technologies.
Now, Patrick Dennis, CEO of Avaya, – who replaced Alan Masarek in September 2024 – has a plan to transform a company, which – in 2023 – endured its second bankruptcy in five years.
That plan may see Avaya maintain only the staff required to serve those 1,500 customers.
Unfortunately, employees in departments that do not support these customers – like marketing – will likely face redundancies.
Meanwhile, regions that do not support many of those customers will likely be hit worse by the job cuts. In some places, Avaya may only offer remote support.
While the UK is likely to retain some of its employees – to Kerravala’s point – it doesn’t hold many of Avaya’s G1500, which is seemingly why it will lose a “significant portion” of its workforce.
According to the latest UK government data, Avaya employs more than 250 staff in the country.
However, it may not be the last region impacted. As Kerravala pointed out:
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. The company has not provided an update in several months.
CX Today contacted Avaya for a statement, but the company declined to comment.
What Now for Avaya’s UK Customers?
Avaya has endured a lot in recent years, going through two bankruptcies. Yet, its customers have remained remarkably loyal, with the company maintaining much of its deep enterprise install base.
New CEO Dennis has recognized that retaining these larger customers is critical to a more sustainable future for the company.
Yet, in orientating the business around these customers almost entirely, Avaya is seemingly isolating much of its customer base – which, upon renewal, may soon look elsewhere.
In doing so, they’ll have a lot of options, particularly those businesses that are ready to switch to CCaaS and reimagine their contact center operations.
After all, the CCaaS space is incredibly crowded. First are the stalwarts like Five9, Genesys, and NICE. Then, there are the hyper-scalers, including AWS, Google, and Microsoft – alongside other enterprise tech vendors making a lot of noise, like Sprinklr, Verint, and Zoom.
Meanwhile, CRM and UCaaS vendors are converging on the market, while there are also many other providers – like Odigo and Puzzel – with a strong UK presence.
Additionally, some vendors are finding success with particular customer segments, like 8×8 and UJET in the midmarket.
For those wishing to stay on-premise, Cisco remains an option, but not the only one. Brands like Bright Pattern, Enghouse Interactive, and Mitel have committed to maintaining and developing their contact center infrastructure (CCI).
Moreover, each of these vendors offers both on-premise and CCaaS technologies, enabling that more cautious “innovation without disruption” journey that Avaya has touted in recent years.
Given all this rivalry, it’s clear why Avaya has adopted its G1500 model. There are simply too many competitors in such a confined space.
Nevertheless, as the layoffs continue to rear their ugly head, Avaya must keep close relationships with these customers and reassure them of its long-term plans. After all, these repeated headlines aren’t a great look, with the company bidding farewell to many talented employees.
