Big UC News from Microsoft, Zoom, RingCentral, and Avaya

From layoffs and retirement to new applications, features, and services, here are some extracts from popular news stories this week. 

RingCentral Announces Layoffs Despite Strong Quarter 

RingCentral has announced that roughly 10% of its workforce is being cut despite its Q3 2022 results exceeding the high end of guidance across key metrics.  

Total revenue for RingCentral’s third quarter was $509 million, which is an increase of $94 million compared to Q3 2021. Subscriptions revenue also increased 25% year-over-year to $483 million.  

Other financial highlights include its GAAP operating margin of 35.9%, up from 20.1% the year before. There was also a record non-GAAP operating margin of 13.5%, which is an increase of 300 basis points year-over-year.  

Alongside this positive performance, Vlad Shmunis, Founder, Chairman, and CEO at RingCentral, reflected on the company’s mass layoffs: “While we recently made the extremely difficult decision to further rationalize our workforce, we believe this will allow us to be more agile and better align our course with our strategic priorities in the current macro environment.  

“This decision was not made lightly, and we understand the impact this has on our people and their families. We’re taking meaningful action to help ease the transition for our impacted employees.

“We want to underscore how grateful we are for their hard work and all their contributions. RingCentral would not be where we are today without them.”  

Sonalee Parekh, Chief Financial Officer at RingCentral explained that the job cuts will result in GAAP-only restructuring charges somewhere between $10 – $15 million. The money will be primarily made up of employee severance and benefits costs, which will be spread out over the next two quarters.  

RingCentral joins a slew of technology companies which have made layoffs recently, including Microsoft, Twitter, Meta, Salesforce, Lyft, Stripe, Netflix, and more. 

Zoom Rivals Google and Microsoft with Email and Calendar 

Zoom is adding hosted and third-party email and calendar services directly into the Zoom app.  

Alongside the launch of email and calendar, Zoom is also releasing Zoom Spots, Zoom Virtual Agent, Zoom IQ Virtual Coach, Zoom for Creators, Zoom Kiosk, Zoom Contact Center integrations, Zoom Developer Platform updates, and enhancements for Zoom Team Chat and Zoom Phone.  

The announcements were made on the first day of the company’s user conference, Zoomtopia, taking place on November 8-9 in San Jose, California.  

Cari Dick, Senior Product Marketing Manager, Zoom Platform, introduced the new email and calendar services: “We are taking a big step forward to help users across the tools they need every day, directly in the Zoom App.  

“A recent study in Harvard Business Review found that employees spend almost 4 hours a week reorienting themselves after toggling between appointments. This wasted time switching between apps really adds up.  

“We are helping to eliminate this toggle tax by bringing critical productivity tools right into the Zoom App, front and centre, by giving users the ability to access their email and calendar, alongside team chat meetings, phone, and whiteboard. Zoom reduces wasted time and enables users to focus on their work.  

“That is why we are excited to announce today the next step in our platform evolution: the private beta of new productivity tools, Zoom Mail and calendar with Zoom Mail and calendar clients.”

Zoom Email and Calendar  

Users will no longer need to leave Zoom to access their email and calendar as popular email and calendar services will be integrated directly into the Zoom meeting application. They will be able to quickly access their communications and scheduling and get their work done more efficiently. 

Avaya CFO Departs Company 

Avaya has confirmed that Kieran McGrath, the Executive Vice President and Chief Financial Officer, is set to retire. 

The company has announced that Becky Roof, the Managing Director at AlixPartners LLP, has been appointed as interim CFO, with the changes effective from November 9. 

It is reported that McGrath will continue with Avaya in an advisory capacity until the start of December as the company aims to ensure a smooth transition. 

Alan Masarek, President and Chief Executive Officer of Avaya, commented: “I thank Kieran for his contributions to Avaya, including delaying his retirement to support my transition to the company and wish him all the best in his retirement. 

“As we continue positioning the business for the long term, I look forward to benefitting from Becky’s expertise.

“We remain focused on continuing to provide our global customers with outstanding communications solutions and support and investing in our long-range product roadmaps.” 

In addition to McGrath’s retirement, Avaya has announced that Shefali Shah, Executive Vice President and Chief Administrative Officer, will be taking on responsibilities relating to strategic initiatives being implemented by Masarek. 

Microsoft Releases Teams Progressive Web App for Linux 

Microsoft has confirmed that its Microsoft Teams progressive web app (PWA) for Linux customers is generally available. 

It means that Linux customers who use Teams for communication and collaboration needs will now have full access to the platform’s features. 

The PWA also allows Microsoft to update Teams faster for Linux customers ensuring that they have the latest features and bridging the gaps between the Teams desktop client. 

Anupam Pattnaik, Product Marketing Lead, commented: “We’re excited to announce the general availability of support for the Microsoft Teams progressive web app as a feature of our current web client for Linux customers. 

“Linux customers who rely on Microsoft Teams for collaboration and communication needs told us they want the full richness of Teams features available for their users in a secure way. This can now be achieved using the Teams PWA.

“Additionally, the PWA enables us to ship the latest Microsoft Teams features faster to our Linux customers and helps us bridge the gaps between the Teams desktop client on Linux and Windows. 

“The PWA experience is available for both Edge and Chrome browsers running on Linux.” 

According to Microsoft, the PWA experience is available on both Google Chrome and Microsoft Edge browsers which run on Linux. 

The PWA gives users access to custom backgrounds, reactions, gallery view, raise-a-hand feature in meetings, and more. 

Zoom Will Bring Video Conferencing to Tesla Cars 

Zoom has revealed that it is partnering with Tesla to bring its video conferencing platforms to the company’s cars. 

The announcement was revealed by Nitasha Walia, Group Product Manager, Zoom Meetings, during Zoomtopia 2022. 

A brief video demonstration was played during the event, and Walia was candid with how much she revealed about the partnership with Telsa. 

She stated: 

“This will be available on all new Tesla models soon.”

During the 45-second video clip, Zoom showed its platform used in a Tesla Model Y while it was parked for charging. 

Details on how the video conferencing platform will work with Tesla vehicles are yet to be revealed; however, it is widely reported that the app will likely use the in-cabin camera above the rear-view mirror. 

There is also speculation surrounding whether video conferencing will be available while the car is moving. 

 

 



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