Voice-over-IP and wireless specialist Avaya has announced a series of layoffs in the Asia-Pacific region that will include the loss of 11 jobs from the company's Australian arm. The staff cuts are in line with a global move to improve liquidity, which also includes real estate consolidation and cuts in IT-related expenses.
The troubles for Avaya - formerly the Enterprise Networks Group of Lucent Technologies, which is also undergoing restructuring - began just over a year ago. In June of 2001 the company shed 3,000 of its 28,000 staff, and when the next quarter failed to deliver the expected earnings, another 1,900 followed in March of this year.
With Avaya's outlook still grim in July, another 2,500 staff were given their marching orders, trimming the company back to 19,000 workers across its global operations.
Avaya posted a loss of $32 million for its third quarter this year, compared to net income of $67 million for the same period a year ago. Company representatives blamed delayed buying decisions from corporates for the poor performance. "Our large enterprise customers, in particular, delayed purchases in the third quarter," said chairman and CEO Don Peterson.
The general restructuring of the company goes even deeper, as Avaya shifts away from a focus on hardware to becoming an IP software specialist.