RingCentral Plans Layoffs After Strong Earnings Growth in Q2

RingCentral is initiating layoffs impacting about 50 employees at its headquarters in Belmont, California.

In a Worker Adjustment and Retraining Notification (WARN) notice with the California Employment Development Department, RingCentral said “changing business needs require us to reduce our workforce at the facility permanently.”

The RingCentral layoffs will take place in two rounds on Sept. 18 and Sept. 25.

RingCentral spokesperson Brett Smith said the company recently notified a “small number of employees” that their positions have been eliminated.

RingCentral’s Brett Smith

“This was a result of making choices on where to invest to maximize impact and optimize for growth and profitability,” he said. “We continue to invest in key areas of the business and will continue to hire in those areas to fuel our growth and further strengthen our position as the UCaaS industry leader.”

The layoffs will include more than a dozen senior roles, including a vice president of marketing operations and strategy, a senior systems integration manager and several senior software engineers. In addition, a platform partner go-to-market (GTM) manager is getting cut.

Despite the cuts, this week RingCentral reported strong growth in its second-quarter earnings. It grew revenue by 28% in the second quarter. Total revenue was $487 million, up from $379 million in the second quarter of 2021. In addition, subscription revenue increased 32% year over year, to $463 million.