Minnesota-based channel partner C1 is conducting layoffs.
A steady trickle of C1 employees have reported the elimination of their jobs on social media in the last two weeks. The impacted positions range from sales to operations to IT to the alliances team. That includes the head of strategic alliances Danny DeLozier, who said on LinkedIn that C1 had undergone a “broader organizational shift affecting hundreds of talented individuals.”
C1 confirmed layoffs in a statement to Channel Futures.
“C1 continues to transform its business to be the global IT services provider and trusted partner its clients rely on,” the company said. “To address the fast-paced market, the company made changes to invest in growth opportunities and drive sustainable success. Some C1 team members have been impacted by this change. The company is supporting those impacted with enhanced transition support and thanks them for their contribution to the company and service to clients.”
The layoffs come almost a year after C1, once known as ConvergeOne, emerged from chapter 11 bankruptcy.
C1 Bankruptcy
A Texas bankruptcy court in May 2024 approved C1’s restructuring plan. The plan aimed to trim $1.6 billion in debt. The goal was for C1 to cut about 80% of its debt and draw $245 in equity commitments. C1 exited chapter 11 on June 4, 2024. The court announced on April 9, 2025, that it had closed the debtor cases for 16 out of 17 C1 subsidiaries.
The remaining case, involving ConvergeOne’s Texan subsidiary, is still ongoing. The Form 204 filing for the case shows a mix of companies among C1’s 30 largest creditors. Distributors have the largest amounts of unsecured credits, with Ingram Micro being owed $39.7 million and ScanSource being owed $21.2 million. There are also vendors on that list, including Genesys ($13.2 million), Cisco ($5.1 million), Pure Storage ($2 million), and NICE ($1.7 million).
C1 Layoffs: Impact of AI
Zeus Kerravala, founder and principal analyst with ZK Research, suggested that the C1 layoffs might simply reflect broader trends in the technology sector. As agentic AI use cases pick up, many businesses are automating human jobs.
“I would say that AI is causing companies to adjust their workforce,” Kerravala told Channel Futures. “At IBM Think, CEO Arvind Krisha stated that AI could replace 20,000 jobs at IBM. If you look, Microsoft has been going through a headcount reduction, etc. I believe AI is creating a transition in jobs, where it will eliminate many jobs, allow us to be more productive and then create new jobs. Every company should be looking at the skill sets in their company and adjust as needed.”
Kerravala said C1 has been implementing AI into the very solutions it offers to business customers.
“AI is creating a huge rising tide, particularly for companies like C1 that help customers put AI solutions together. Their experience in network should be a differentiator as the network plays a key role in the performance of AI,” he said. “So while the company is reducing headcount now, this is part of talent reallocation and they should be rehiring many of those people.”
C1 has diversified its portfolio in the last decade to include a mix of on-premises and cloud-based products and services. Genesys recently named it North American Partner of the Year.
John DeLozier, longtime channel leader and brother to Danny DeLozier, left his position as chief revenue officer at the company last month.