Avaya CEO: Financial Issues Temporary, Recovery Coming SoonAvaya CEO: Financial Issues Temporary, Recovery Coming Soon
Avaya plans to begin its fiscal 2023 with a clean financial slate.
September 15, 2022
Avaya is on the road to recovery and its financial issues should improve in fiscal year 2023, which starts next month.
Avaya’s Alan Masarek
That’s according to Avaya CEO Alan Masarek and vice president of channels John Lindsley. They fielded Channel Futures’ questions regarding the company’s financial woes and the turnaround in place. Masarek, former Vonage CEO, replaced Jim Chirico in July.
Avaya’s Partner Community Council (PCC) is meeting this week in Nashville, Tennessee. Masarek has been actively involved in the event.
Last week, Avaya began cutting jobs in North America, Central America and Latin America. That’s part of significant efforts toward cost-cutting measures of $225 million-$250 million this quarter.
Avaya Financial Issues Mount
Avaya’s third-quarter revenue was down 20% year over year to $577 million, according to its earnings report. In addition, the company carries sizeable debt, having borrowed $600 million in June. An internal investigation of the company’s board of directors by Avaya’s audit committee to review third-quarter results is underway. The committee is also examining a whistleblower letter.
Masarek tells us cost-cutting measures should be enough for Avaya to enter 2023 with a clean slate.
Avaya’s John Lindsley
“On Sept. 6, we began initiating significant efforts toward cost-cutting measures of $225 million to $250 million this quarter,” he said. “The actions announced last week are expected to provide net savings at the top-end of the $250 million that we disclosed to the U.S. Securities and Exchange Commission (SEC) in the Form 8-K. I am confident that this is a step in the right direction to correct our financial standing and lead the company into the future, and plan to begin 2023 with a clean slate as we get on the other side of the short-term financial noise.”
Scroll through our slideshow above for more from Masarek and Lindsley.
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