Thread regarding Avaya layoffs

How many more layoffs?

The Nov. 2024 Fitch report concluded Avaya's liquidation value is $540M, based on a 5.5x multiple of $128M EBITDA.

Further, Fitch estimates a 10% yearly decline in revenues moving forward.

Assuming the current owners want a competitive return on their $628M investment in made 2023, how many more layoffs can we expect?

Some quick back of the envelope math:

To increase the liquidation value Avaya to roughly a $1B target that the current owners need, they need to increase EBITDA this year by about $100M, to roughly $200M.

To do that in the face of 10% declining revenues, Avaya needs to decrease spending by roughly $200M this year. If Avaya saves $100k/employee on average for each layoff, to save $200M this year, they will need to layoff 2,000 employees in 2025, and if the revenue declines continue on the current trend probably another1,000 in 2026.

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| 2472 views | | 6 replies (last February 13)
Post ID: @OP+1jkvsyvct

6 replies (most recent on top)

When talntmaker showed 8300 records, that included actual employees and contractors also - more of the latter. Since then more ppl were laid off monthly, and some more were outsourced (search for infinite in this forum), layoffs surely continue this month. They have a target # to reach. Hola!

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Post ID: @ga+1jkvsyvct

I'd guess less than 75 represented union employees in the U.S.

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Post ID: @f8+1jkvsyvct

Who is the Avaya --whole who believes the BS 8300#????

PER PUBLIC FILINGS (and KNOW they took liberty with these #s, too, allowed a 12 month runway per SEC)

As of September 30, 2022, we employed 7,090 employees, of which 34% were located in North America (United States and Canada), 26% were located in Asia Pacific, 8% were located in the Caribbean and Latin America and 32% were located in Europe, Middle East and Africa. In addition, 22% of our global employee headcount identified as female. In the United States, 27% of the employee headcount identified as female and 26% of our employees self-identified as a minority group. On September 6, 2022, we announced a reduction in force to realize annual cost reductions, together with other unrelated incremental cost reduction actions, to better align the Company’s workforce with its operational strategy and cost structure. During the fourth quarter of fiscal 2022, we completed a reduction in force of 766 employees, approximately 10% of our global workforce, and we recognized $26 million of related restructuring expense. The Company made, and expects to make, additional reductions in workforce during fiscal 2023 as it continues to align the business with its operational strategy and cost structure.

Of our 2,077 employees located in the United States, 13% are represented by a labor union. In many countries outside of the US, our employees are represented by trade unions, work councils or collective bargaining agreements at the national level<

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Post ID: @e6+1jkvsyvct

8300 employees was NEVER in ANY FORMAL FILINGS and ONKY the PROPAGANDA # used by the Analyst relations team to get the PAPD OFF ANALYSTS to quote it

5700 Employees was posted on the FINAL SEC Filing. And that was referenced as dates 2021. Avaya lost hundreds in 2022? Hundreds more in 2023. Thousands in 2024. It is ➗➕➖🟰 MATHEMATICALLY IMPOSSIBLE for Avaya to have more than 1800 employees left. Period<

Harvard Business School needs to teach the story of Avaya in a course titled PROPAGANDA vs FACT VERIFIED TRUTH

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Post ID: @e4+1jkvsyvct

Before the nov layoff's there where ~8300 people in the org chart world wide.

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Post ID: @cs+1jkvsyvct
  • A) Precisely.
  • B) Do we even have 2200 employees? Aren't we trending down toward 1800 at this point?
  • C) Layoffs are not even enough. And the powers that buy are not not awarded a payday with a "deal". So the real question is, how can they pull off a "deal" with this backwards math? Who can benefit from taking on the Avaya debt with little upside? Is it even possible. It is liquidation inevitable?
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Post ID: @cf+1jkvsyvct

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