Five9 axes top executives as layoff wave, sale rumors intensify
CALIFORNIA, UNITED STATES — Five9 ousted three senior executives, signaling potential turmoil within the cloud contact center leader, a source told CXToday.
The decision is paired with speculation that the broader staff will experience layoffs and the growing speculation that the company is preparing itself to sell as activist investors press the company to change.
Leadership shakeup and workforce reductions
Five9’s three major executives who were laid off were Niki Hall, the Chief Marketing Officer (CMO); Jim Doran, the Executive Vice President (EVP) of Corporate Strategy; and Tricia Yankovich, who was Head of Human Resources.
Mass layoffs are imminent, marking the third instance of job cuts within a short period, following the company’s workforce reductions of 7% in 2024 and 4% in 2025.
The exit points to the future of Five9, as its Chief Executive Officer (CEO), Mike Burkland, recently boasted of having “really exciting marketing initiatives” and the upcoming departure of Hall from its roster.
The subsequent rounds of layoffs and the exit of the executive team imply even bigger financial or operational issues, possibly related to pressure on the part of its investors or a sale scenario.
Mounting investor pressure and acquisition rumors
Five9 recently ranked #21 in the OA500 2025, an objective index of the world’s top 500 outsourcing companies. However, its stock has plummeted 30% over the past year, despite maintaining double-digit revenue growth, frustrating activist investors like Anson Funds. In December 2024, the company granted Anson a board seat, fueling speculation that a sale could be imminent.
Takeover rumors have been perpetuated by previous interest, such as a $14.1 billion takeover attempt by Zoom in 2021 that was not won over despite it being increased to a level that had made it the largest acquisition of all time.
Potential suitors now include Customer Relationship Management (CRM) giants like Oracle, Contact-Center-as-a-Service (CCaaS) competitors like Genesys or NICE, or tech firms looking to expand in cloud contact centers.
However, with Microsoft and Google already entrenched in the space, a buyer would need significant resources to absorb Five9’s over $1 billion revenue business. The company’s $2.15 billion market cap makes it a target, but its future remains uncertain amid industry consolidation.
