The layoffs are meant to eliminate redundancies at Mitel in the wake of its mobile business sell-off. The firm is also merging the operations of its cloud-selling and enterprise-service divisions, previously kept separate. Mitel’s cloud division was kept separate from traditional operations while the firm incubated the business. McBee says that the Channel has matured to a point where it no longer makes sense to keep the two operations distinct.
As with all department mergers, many duplicate roles will emerge in areas including human resources, management, general, finance, and administrative. McBee stressed that the duplicate roles created post-merger are the only reason behind the layoffs.
For the quarter that ended March 31st, 2017, Mitel had earned revenues of $223.1 million, which is a loss of around $10 million from the previous year. Additionally, they announced a net loss of around $19.7 million for the quarter.