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Unify Cutting 50% of Its Workforce

**Editor’s Note: Click here for a recap of layoffs impacting some of the biggest names doing business in the indirect channel.**

Unify, the former Siemens Enterprise Communications, is laying off half of its work force.

Out of 7,700 employees worldwide, 3,800 will lose their jobs as Unify moves away from its traditional hardware focus, the company announced on Monday.

The cuts will accompany a simultaneous restructuring that will include “a shift to a multitier go-to-market approach, and the consolidation of sites around the globe,” Unify said in a press release. “This also includes a review of the future location of the global headquarters.”

Most of the layoffs – 50 percent – will hit workers in Central Europe, presumably in Germany, where Unify is based.

Unify explained its decision as a reaction to a changing marketplace, where organizations now are demanding subscription-based, opex-reliant cloud services instead pricier, on-premises infrastructure. The shift “requires Unify to take steps immediately to accelerate its transition from a traditional hardware manufacturer to a true communications and collaboration software and services company,” the company said in its June 2 press release.

The changes are led by Unify’s new CEO, Dean Douglas.

“Unify must transform in order to remain competitive, so we are taking these necessary and very difficult steps in order to position Unify to fully respond to the needs of our customers and the marketplace,” Douglas said. “This includes greater focus on technology deployment options with access to our OpenScape products and services from a broader choice of partners.”

To that point, it plans to simplify its OpenScape portfolio and expand its channel partner strategy.

In addition, Unify said the release of the much-discussed Project Ansible platform, a unified communications service that will rely heavily on WebRTC, won’t happen this summer, as originally announced. Instead, the date now has been moved to October. Finally, the job cuts accompany Unify’s beefed-up emphasis on SMBs, not just large enterprise customers.


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