RingCentral is cutting about 50 employees from its headquarters in the San Francisco Bay Area, according to a local media report. The cuts are slated for September 2022, but RingCentral will continue to have a team of around 700 people in the Bay Area, and the cloud communications provider plans to hire in areas of business growth, according to the report.
RingCentral promotes collaboration, video conferencing, and phone services to businesses. Unified Communications as a Service (UCaaS) works closely with channel partners, ISVs (independent software vendors), hardware companies, and consulting firms, among other types of businesses.
RingCentral’s revenue was $487 million in the second quarter of 2022, up 28% from the second quarter of 2021. Net loss was $159.5 million, compared to a net loss of $111 million in the first quarter of 2021. The numbers generally exceeded Wall Street expectations.
Related: See all tech industry layoffs listed here.
Potential UCaaS Market Challenges Facing RingCentral, Avaya, Mitel…
Still, RingCentral and other UCaaS market players are trying to run their businesses very cautiously amid talk of the recession on Wall Street and potential competition from consumer video conferencing and collaboration services such as Microsoft Teams. , Salesforce Slack, and Zoom.
Among the anecdotal elements to note on the UCaaS market:
Looking closer, you’ll notice that RingCentral invested in Avaya in 2019, and RingCentral acquired some Mitel technologies in 2021.
Elsewhere, UCaaS provider Intermedia canceled a 2021 IPO under “adverse conditions” in the IPO market. Shortly after, NEC announced its intention to invest $40 million in Intermedia.
Mergers and Acquisitions UCaaS
Meanwhile, M&A activity in the UCaaS market slowed in 2022 after a strong performance in 2021.
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