RingCentral Laying Off 50 Workers At California Headquarters
The cloud UC powerhouse is cutting dozens of employees from its headquarters in the San Francisco Bay Area following a very successful fiscal Q2 that included 38 percent mid-market and enterprise annual recurring revenue growth.
RingCentral is laying off 50 employees from its headquarters in the San Francisco Bay Area.
The jobs cuts come on the heels of a strong fiscal second quarter, which the company announced earlier this month. The impending layoffs are scheduled for September, but RingCentral will continue to have a team of about 700 people in the Bay Area and the Unified Communications-as-a-Service provider plans to make hires in growth areas of the business.
“Recently, we notified a small number of employees that their positions have been eliminated,” a RingCentral spokesperson told CRN. “This was a result of making choices on where to invest to maximize impact and optimize for growth and profitability. We continue to invest in key areas of the business and will continue to hire in those areas to fuel our growth and further strengthen our position as the UCaaS industry leader.”
Half of the affected employees will be let go as of Sept. 18 while the other half will be laid off Sept. 25, according to a Worker Adjustment and Retraining Notification (WARN) filing in California. All the workers were notified of the layoffs on July 20.
Belmont, California-based RingCentral specializes in collaboration, video conferencing and phone services to businesses. The channel-first company partners with more than 10,000 solution providers globally, the company told CRN in 2020.
In Q2 2022, which ended on June 30, RingCentral posted revenue $487 million, up 28 percent compared to Q2 2021’s figure. Subscriptions revenue increased 32 percent year over year to $463 million, and mid-market and enterprise annual recurring revenue climbed 38 percent year over year to $1.2 billion. The company’s numbers for the most recent fiscal quarter beat Wall Street’s expectations.
The company in 2020 revealed that it would be the power behind an Avaya offering that has since taken off in the collaboration space for Avaya: Avaya Cloud Office powered by RingCentral (ACO). ACO offers calling, messaging, video conferencing, file sharing and collaboration across any device or user location. The two companies in 2019 kicked off their partnership that had RingCentral purchase $125 million in Avaya stock for a 6 percent equity position in the company.
RingCentral in 2021 acquired certain Mitel technologies, including the company’s CloudLink technology, for $650 million. Via the terms of the deal, RingCentral became Mitel’s exclusive UCaaS partner.