Is choosing to leave voluntarily preferable to being laid off? It does appear to be the strategy that Avaya has in mind, offering a voluntary exit program for employees to cut down its staffing expenses. The company did not clarify exactly how many employees it wanted to cut back on, but reports suggest that its entire workforce has received an offer to leave. An anonymous source revealed that ideally “a lot of employees” will be shed by the organization, but Avaya has maintained its silence on the matter.
Avaya’s call for voluntary resignations could see a lot of takers, considering that the company appears set on bringing down its numbers one way or another, but the state of the job market may force many to stick around for a little while longer. If the exit packages are impressive enough, Avaya could see the number of exits it’s hoping for, but it is too early to comment on just how the tides turn on this matter.
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Avaya Offers Voluntary Exit Packages to Employees
In a bold and unprecedented move, Avaya, a global leader in unified communications and contact center solutions, has reportedly offered voluntary exit packages to its entire workforce as part of a sweeping cost-cutting and restructuring initiative. The last few years have not been easy on Avaya, with difficulties in managing finances, rising competitive pressure, and a shifting market landscape. With two bankruptcies in seven years and increased struggles with transitioning to cloud-based solutions, the company has struggled to stay afloat.
As a result, it’s no surprise that Avaya is looking for voluntary resignations to cut down its numbers. The company has reportedly offered severance packages tailored to the employee’s tenure and their current role at the organization to incentivize their decision to leave.
While we’ve seen other organizations like Google also resort to a voluntary exit program this year, the program was offered to sections of workers rather than the entire workforce at large. To its credit, Avaya doesn’t appear to believe that it will be left with an empty office devoid of any employees at the end of this ordeal. The company likely wants every employee who is close to quitting to consider leaving immediately rather than waiting it out at the organization.
As Avaya Offers Quit Packages, Layoffs May Also Be on the Cards
Avaya has already implemented multiple rounds of layoffs, with significant cuts in 2024 and early 2025, particularly impacting regions like Europe, the Middle East, and the UK. Initially started on a small scale in North America, the company’s global forces have been shown the way out with great regularity. Offices have been shut, and employees have even gone remote to reduce expenses.
Avaya’s exit packages are an interesting alternative, but they don’t eliminate the possibility of further layoffs. If the company is unable to meet its secret quota of employees accepting the voluntary exit packages, it will likely have to take matters into its own hands and execute cuts where it sees fit.
It is certainly possible that the company’s history with financial difficulties could lead many to accept Avaya’s strategic exit signal and move, eliminating any need for the company to go through the unpleasantness of picking and choosing who should go.
Avaya’s Exit Packages Open up the Conversation on the Advantages of VEPS
Voluntary exit programs (VEPs) are a very useful strategy that businesses should employ more frequently. Most organizations are bound to see some degree of employee turnover each year, and a voluntary exit program makes it easier for employees to quit, particularly those who are already unsure about their jobs. Instead of layoffs that add pressure to select the employees, some of whom may be very committed to their roles, deals like Avaya’s voluntary exit program put the decision-making power into the hands of the employees.
Unlike targeted layoffs, Avaya’s program extends to all employees, from executives to frontline staff, signaling a comprehensive restructuring effort at the heart of affairs. This broad approach is unusual, but it does underscore the depth of the company’s cost-cutting goals this time around. This strategy comes with some risks, such as considerable talent loss and a dent to employee morale among those who remain, but the company’s situation appears to demand a straightforward strategy.
From an HR perspective, the program’s success will depend on Avaya’s ability to balance cost-cutting with its continued investments in talent, innovation, and customer relationships. By prioritizing transparency, targeted retention, and cultural alignment, Avaya’s HR team can navigate this transition while positioning the company for sustainable growth, but it won’t be easy.
For Avaya, the voluntary exit program appears to be the best way forward, but each business will have to make its own evaluations to determine if an exit program for all employees really is the best way forward.
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