WANdisco to axe nearly a third of its workforce
Sheffield-headquartered WANdisco is to slash its global headcount by about 30%, as it deals with the fallout of millions of pounds worth of false purchase orders made by one of its senior sales employees.
The embattled big data business, which employs more than 180 people in the UK and California, says this will affect all areas of its operational and geographic footprint and consultations with staff are now under way.
Kenneth Lever, executive chairman, said: “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.
“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.”
Last month, an independent investigation concluded that all purchase orders associated with one particular senior sales employee at the company were “illegitimate.”
The business is also subject to a separate investigation by the Financial Conduct Authority.
WANdisco warned the London Stock Exchange about potentially fraudulent purchase and sales orders on 9 March, when it said its 2022 revenue forecast might be slashed from $24m to as low as $9m.
An interim report has confirmed purchase orders worth $15m and sales bookings of $115m in 2022 are false, and that WANdisco’s full-year revenues for 2022 should have been $9.7m. The same report also confirms unaudited bookings should have been $11.4m, rather than $127m.
Trading in WANdisco shares has been suspended since 9 March, but the firm has operated and traded as usual and says it is working to try and lift the suspension “as soon as is practicable”.
Last month, David Richards, co-founder and chief executive, and chief financial officer Erik Miller resigned from the WANdisco board and leadership team.
