Is this the first one in company history?
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The stability comment is legit. Customers are tired of root cause from impacting events being human error. Higher level talent required to root out the amateurs.
It’s common knowledge that many of the larger customers have encountered stability issues over the past few years. Platform stability is a real concern going forward. This has likely led to fewer big enterprise customers selecting Five9, interestingly NiC has had a big uptick in very large CCaaS deal wins at the expense of Five9.
Everyone saying that this is "caused by" the sales org changes (such as the new EVP), or making other indirect connections, just really isn't seeing the big picture in my view. All these changes are downstream of the real issue: that Five9 is having trouble executing because not everyone that works there is aligned with the direction that the company is trying to go. Aggressive changes to the structure of the organization are required here, and while I don't know if they are making the right ones (nepotism accusations do seem worrying) - they're doing something and I'm pretty certain that's better than what they were doing 6 months ago.
The CFO has been on vacation for over a decade, the current CEO lacks effectiveness in driving strategic initiatives, the president used to know his trade, but seems to be running out of steam. Five9 has significant potential, but it requires a CEO with a clear vision, strong strategic acumen, and the ability to lead a more efficient and effective team.
Will this encourage a potential buyer?
Rowan benefited from 0% interest rates. Most growth stocks are off 80% plus from 2021 heights. Look at Zoom, Docusign, etc
Rowan ~ 200$
Mike ~ 30$
The layoffs were due to stock price dropping, the stock price dropping was due to annual revenue forecast being off. This seems directly the fault of whoever is involved forecasting and lining up deals, ie sales and finance.
So now we all get to work understaffed because sales and finance can't do their jobs.
It IS hard to argue that there weren't many (ANY?) top level exits and if the values are accountability and transparency -- the buck SHOULD stop with the executive level that hasn't been keeping the trains running on time.
Five9 is top heavy and should have cut it's over paid and under performing EVP staff instead. The stock is down over 51% YTD, most CEOs would have been replaced by now.
Yes, these layoffs are a first, companywide, and were difficult decisions for everyone involved. It is a very sad day for Five9. It should be noted that some affected by today’s layoffs ARE personally connected to the CEO as he has been with the company for almost 17 years and cares deeply for his employees. To say that the new EVP of Sales was promoted due to his personal relationship to the CEO is completely false. Changes at Five9 are made based on performance. The new EVP of Sales has excelled in every position he has held for the past decade. This was a great move for the company and his results will soon speak for themselves. It was time for a change in this particular case and has nothing to do with today’s layoffs.
It’s a shame, Five9 has been very stable from an employee standpoint for a long long time. Nothing to do with new EVP of sales IMO. It’s likely in sales they are purging low performing individuals and leaders.
New Sales EVP is an under qualified family friend of the CEO / President. Kind of the way the company works so not surprising the stocks been falling fast when it’s ran that way.
The layoffs were global and were difficult decisions for everyone involved. Please don't spread misinformation it doesn't help anyone laid off or otherwise. It had nothing to do with Sales EVP or any other one individual leader. Five9 doesn't roll that way and if you think they do you haven't been around very long
Anyone who thinks the EVP did this is an id--t pushing their own warpwd agenda.
This hit more than just the people he oversees.
Be respectful to the team mates that we lost, most were really good people.
Yes no layoff in company history. All due to newly promoted EVP of sales. Clearing out old regime
Yes - it is.