Avaya cuts jobs worldwide, shifts focus to top clients
NEW JERSEY, UNITED STATES — Avaya’s global restructuring has entered a critical phase, with layoffs spreading across Europe and the Middle East. Marketing, engineering, and support teams, as well as high-level executives, have been significantly affected.
The move is part of Avaya’s strategy to narrow its focus on its top 1,500 global customers (G1500), a shift that has left some regions with minimal or no presence.
Zeus Kerravala, Principal Analyst at ZK Research, noted the disproportionate impact on Europe, particularly the United Kingdom.
“Laying off people in the UK is complicated, so Avaya has avoided that until now, and now it’s coming all at once,” Kerravala explained in an interview with CX Today.
He added that regions like the Middle East, which contribute minimally to the G1500, may see Avaya exit entirely or operate remotely.
Avaya adopts Broadcom-inspired strategy
Under CEO Patrick Dennis, who took charge in September 2024, Avaya is implementing a scaled-down version of Broadcom’s business model. This approach focuses on serving large enterprises rather than catering to a broad market that includes small and mid-sized businesses.
As a result, marketing teams and roles supporting non-G1500 customers have been heavily impacted.
Kerravala emphasized that the job cuts are “deep.” Entire departments that are not aligned with the G1500 focus have been eliminated, while engineering and support roles are being outsourced to maintain operations with fewer in-house resources.
Leadership and North America less affected
Even senior executives have not been spared. “They’ve been targeting VP level and up as they have been overly fat up there,” Kerravala remarked.
However, North America—home to most of Avaya’s G1500 clients—has seen relatively fewer layoffs compared to other regions.
Challenges for Non-G1500 customers
As Avaya narrows its scope, customers outside its G1500 may reconsider their partnerships with the company. This opens doors for competitors in an increasingly crowded contact center market. Despite these challenges, Avaya aims to replicate Broadcom’s success by streamlining operations and achieving higher profit margins.
While this strategy aligns with trends favoring hybrid and private cloud solutions for large enterprises, questions remain about whether Avaya can sustain long-term relationships with its largest clients amid such drastic changes.
Read more here.
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