Accounting software giant Xero to cut up to 800 jobs amid tech layoffs
New Zealand accounting software company Xero is cutting between 700 and 800 positions to “improve profitability” amid widespread technology layoffs hitting the sector globally.
ASX-listed Xero employed 4915 people in September last year, meaning the it will sack about 16 per cent of its workforce but its not clear where the jobs will be cut from.
The company’s current stock market value is $11.81 billion.
Xero was founded in Wellington, New Zealand in 2006 and has since established a global presence, including five offices in Australia.
CEO Sukhinder Singh Cassidy said the organisation needed to “streamline and simplify” to enable the next phase of growth.
“These changes and our decision to reinvest in key strategic areas, will adjust our operating cost base as we balance growth and profitability, while taking a robust approach to capital allocation that supports long term value creation,” Cassidy said in a statement.
The job cuts are expected to save the company between $25-$35 million.
“These are difficult but necessary steps as we work to further strengthen Xero for the future, while carefully balancing the interests of all stakeholders.
“We don’t take these decisions lightly and we recognise today is a very hard day for our people.
“Today does not take away from the significant contributions from everyone at Xero.”
Xero has 3.5 million small business subscribers in core accounting solutions, payroll, workforce management, expenses and projects.
It comes as Australian-born software company Atlassian announced it would sack five per cent of its workforce which is about 500 employees, earlier this week.
Co-founders billionaire Mike Cannon-Brookes and Scott Farquhar wrote in an update to employees the company had to rebalance the team to better position Atlassian for the long term.
