8x8 is the latest Bay Area business to cut jobs. But there may be a twist to the story.
Representatives of 8x8 and RingCentral did not immediately respond to requests for comment about the Channel Futures article.
The report of a potential merger comes as both companies have seen their share prices plunge amid ongoing losses. In the first nine months of last year, RingCentral lost $595 million on $1.5 billion in sales. In the first six months of its fiscal year, which ends in March, 8x8 lost $37.7 million on $375 million in sales.
Both companies have seen their share prices fall at least 70% over the last year. Shares of 8x8 fell nearly 5% Wednesday, closing at $4.38 a piece. RingCentral's stock dropped less than 1% on the day, closing at $36.34 a share. Both companies offer cloud-based communications and collaboration services for businesses. But RingCentral is the bigger company; its $3.5 billion market capitalization is about seven times larger than 8x8's.CEO David Sipes. The company didn't explain why it let go of Sipes, who had headed 8x8 for two years and was previously an executive at RingCentral.
The communications provider is only the latest Silicon Valley employer to cut jobs. Earlier Wednesday, Microsoft Corp. disclosed it's cutting 46 employees in the region as part of a
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