Mitel has announced it is looking to cut around 10% (300 positions) of its total worldwide workforce by the close of this year, the firm announced as part of its first-quarter earnings report last week. According to the CEO of the company, Rich McBee, there will even be a loss of around 60 jobs from operations in the National Capital Region. Around 600 people are currently working in the Kanata building, while the company maintains 3,200 employees globally.
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.
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