Thread regarding Avaya layoffs

Mitel+Avaya Synergies 250M/year

Mitel's purchases of InterTel, Aastra, and Shoretel were executed with boasts of synergies that resulted in massive job losses and attrition. Those companies also had overlap but not on the scale of a behemoth like Avaya, nor did they carry the debt load Avaya does.

Bloomberg reports they expect synergies of at least 250 million per year. Given the 100% overlap of the two companies, Mitel 3100 employees, Avaya 8200 employees, it's safe to assume that the 'synergies' will mostly come from permanently removing salaries from both companies. 250 million/year can be estimated to be at least 2500 north american and euro jobs, likely more. Asian employment will increase as Mitel's Dallas based management's long term strategy is to offshore R&D jobs to India and manufacturing activities to China. Mitel's executive management team is very proud that they get in front of economic recessions by ruthlessly cutting staff as soon as they feel a sales chill. Pray that Trump is right and the good times will keep rolling, better yet, pray that a better suitor comes along.

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Post ID: @OP+10DpZlks

15 replies (most recent on top)

Streetinsiders premium article says takeover days away.
All i could read was the headline :(

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Post ID: @kcjq+10DpZlks

Mitel is confirmed to take over Avaya

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Post ID: @idak+10DpZlks

Possible it's taking longer because more interested parties to consider offers from.

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Post ID: @gmjf+10DpZlks

Given all is so quiet and we're nearly at 30 day deadline this deal is obviously collapsed.

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Post ID: @guxw+10DpZlks

Mitel Avaya deal is Off. Avaya will fight alone

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Post ID: @7glk+10DpZlks

Sounds like wishful thinking. Mitel will not solve Avaya's problems, rather both will sink if the deal goes through.

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Post ID: @6nej+10DpZlks

Mitel is very ruthless in removing corrupt leaders in high cost regions first and taking control from there.

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Post ID: @4plr+10DpZlks

Avaya CEO says they will do what is best for shareholders. What about partners and employees? I also heard that Avaya may not agree to any deal. Could all of this talk and rumour be a ploy for shareholder short term gain?

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Post ID: @3iuk+10DpZlks

Either way the Avaya end user customer will not be happy with any of the outcomes. I just don't see any value in acquiring a base of Avaya legacy systems (except for intellectual properties) that is walking dead. Avaya customers will be moving away from Avaya soon enough. The wagons are already circling.

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Post ID: @2awl+10DpZlks

I definitely agree that with a potential Mitel purchase there would be massive redundancies resulting in large layoffs for either organization - particularly Avaya. But honestly, I think that is inevitable regardless of whatever deal is inked. On the flip side, I think there a different POV that should be considered regarding the potential CD&R/RingCentral offer.

We know the on-premise market is declining rapidly YoY...but there are still going to be customers (typically large enterprise customers) who are never going to move to the cloud. Ring is a born in the cloud provider with zero background in on-premise or UC systems, which is (almost) everything Avaya represents and brings to market. I am wildly unsure if a pure cloud player would be able to successfully transition and support such a large on-premise-centric organization and the customer base they support. Not to mention, Ring has zero experience in the maintenance and support of legacy on-prem systems. Sure Mitel has had their bumps along the way, but at least they have tried to represent both sides of the fence. I'm torn...I think there are pro's and con's to both.

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Post ID: @1xxx+10DpZlks

On a macro level it depends on what products they choose to keep to sell and on a micro level how good your own numbers are. A merged Mitel-Avaya would have far too many redundant platforms to keep. Some would have to be put into maintenance mode for deprecation.

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Post ID: @1agd+10DpZlks

I work is Sales for Avaya am I likely to be offered redundancy??

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Post ID: @1fof+10DpZlks

Prayers answered??
Private equity firm CD&R considering all cash offer and possibly partnering with RingCentral.
Stay tuned....

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Post ID: @1ueb+10DpZlks

The new company will be called Mitel Technologies with Avaya Labs innovations.

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Post ID: @ilg+10DpZlks

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