Scandal-hit WANdisco to cut 30% of jobs
WANdisco will lay off around 30% of its staff as it continues to deal with the fallout of the major accounting scandal that turned the firm from a UK tech darling into a business struggling to stay alive.
The firm, which had 159 employees when its last annual report was published just over a year ago, will cut 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 undercovered potentially fraudulent sales, and as a result its bookings would be much lower than previously reported. It later revealed that its bookings should have been $11.4 million rather than $127 million.
The scandal led WANdisco to suspend its shares and to co-founder and CEO 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,” executive chair Kenneth Lever said.
“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."