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News » Five9 cuts 7% of workforce, aims for profitable growth

Five9 cuts 7% of workforce, aims for profitable growth

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CALIFORNIA, UNITED STATES — Five9, a Contact Center as a Service (CCaaS) provider, recently announced plans to lay off approximately 180 employees, equating to a seven percent reduction in its workforce. 

This decision, disclosed in the company’s recent SEC filing, is part of a broader strategy to enhance shareholder value by driving balanced and profitable growth.

Strategic realignment for long-term growth

The workforce reduction is a component of Five9’s long-term strategy to increase revenue and improve profitability. The company aims to complete these actions by the end of 2024. 

CEO Mike Burkland communicated to employees that the immediate priority is supporting affected staff with severance and job transition assistance. 

Burkland emphasized the company’s focus on strategic initiatives and customer delivery, expressing confidence in Five9’s future.

Balancing growth and profitability

Despite the layoffs, Five9 recently achieved a significant milestone by surpassing a $1 billion annual revenue run rate. This achievement underscores the company’s growth, driven by its AI and automation portfolio, which has seen substantial increases in enterprise subscriptions. 

The firm also recently announced its plans to acquire Acqueon, a specialist in AI-driven customer engagement, in a move to bolster its market position. This acquisition is expected to enhance Five9’s Intelligent CX Platform, transforming it into an orchestration engine for customer interactions across various stages of the customer journey. The deal is set to close in the second half of 2024 and aims to expand Five9’s reach beyond traditional customer service.

Industry-wide layoffs reflect market trends

Five9’s layoffs are part of a broader trend in the CCaaS industry, with other major players like Avaya and Cisco also announcing workforce reductions. 

These layoffs are speculated to result from increased competition, slower growth, and the impact of generative AI, prompting companies to restructure their operations to meet new customer demands better. 

As the CCaaS market evolves, Five9 remains focused on strategic growth and delivering value to shareholders.

Read more here.

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