8×8 Layoffs 2020: UCaaS Provider Cuts Staff
8×8 has confirmed layoffs, though the unified communications as a service (UCaaS) provider did not disclose the number of staff cuts, and hiring in certain areas of the business continues.
The 8×8 layoffs, first reported by Silicon Valley Business Journal, come roughly two weeks after the SaaS-based voice, video, chat and contact center provider announced Q4 fiscal 2020 financial results. For the quarter ended March 31, 2020:
- Revenue was $121.5 million, up 29.6 percent compared to the corresponding quarter in fiscal 2019.
- Also, net loss was $50.1 million — larger than the $28.1 million net loss in Q4 of fiscal 2019.
Despite healthy revenue gains, 8×8’s stock fell 26.6 percent on the earnings news amid the growing financial losses and competitive concerns, SeekingAlpha notes.
8×8 Business Evolution: Increased Enterprise Focus
Vik Verma, CEO, 8×8
During a May 12 earnings call, 8×8 noted churn and and cost of customer acquisition challenges in the small business market. In response, the company has been scaling its marketing automation and accelerating e-commerce offerings to transition small businesses to self-service support. 8×8 has also been shifting its recurring revenue toward mid-market and enterprise customers, the company told Wall Street analysts on the call.
The business evolution, including restructured operations, puts 8×8 on track with its goal to “achieve non-GAAP profitability exiting this fiscal year,” CEO Vika Verma said during the May 12 earnings call.
8×8 is the latest in a growing list of technology companies to cut staff amid the coronavirus pandemic and related economic fallout. The cuts even involve fast-growth market segments like data protection and cybersecurity.
8×8 Channel Partner Initiatives
8×8’s growth plan includes channel partnerships. The company in its most recent quarter launched a Referral Program for individuals, IT consultants, technology advisors and 8×8 customers in the United States, Canada and the United Kingdom to recommend 8×8 solutions.
No Comments