WANdisco to axe 30% of staff as fraud fallout continues

4th May 2023 08:02

(Sharecast News) - Troubled tech firm WANdisco is to fire around a third of its workforce as it deals with the aftermath of an accounting scandal.

The company, which had 159 staff, according to its last annual report, said it would axe jobs across all regions and business areas. Its headquarters are in Sheffield and San Francisco, while it also has offices in Newcastle, Belfast, China, South Korea, Japan and Australia.

In March, WANdisco revealed it had discovered potentially fraudulent sales, resulting in bookings being wildly overstated.

It later revealed that bookings should have been $11.4m million rather than $127m. The scandal led WANdisco to suspend its shares and to co-founder and saw chief executive David Richards and finance boss Erik Miller stepping down from the business. The firm said the fraudulent accounts were the work of a single sales employee.

"The proposal to reduce the company's overall headcount was considered at great length. Regrettably, the proposed action is a necessary step to responsibly position WANdisco for long-term growth," said executive chair Kenneth Lever.

"We are working through the process as sensitively and supportively as we can, providing those directly impacted with as much information and support as possible and at all times in full compliance with local law."

Reporting by Frank Prenesti for Sharecast.com