8x8 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 8x8 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, 8x8's stock fell 26.6 percent on the earnings news amid the growing financial losses and competitive concerns, SeekingAlpha notes.
8x8 Business Evolution: Increased Enterprise Focus
During a May 12 earnings call, 8x8 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. 8x8 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 8x8 on track with its goal to "achieve non-GAAP profitability exiting this fiscal year," CEO Vika Verma said during the May 12 earnings call.
8x8 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.
8x8 Channel Partner Initiatives
8x8's growth plan includes channel partnerships. The company in its most recent quarter launched a Referral Program for individuals, IT consultants, technology advisors and 8x8 customers in the United States, Canada and the United Kingdom to recommend 8x8 solutions.
