Significant job cuts are coming to Yorkshire data firm WANdisco in the fall-out of a potential fraud that has rocked the company.
The Sheffield and California-based business told the London Stock Exchange today that it intends to slash its global headcount of about 160 people by 30% in an effort to put itself on stronger footing. Recently appointed executive chairman Ken Lever, who has been leading an investigation into serious concerns surrounding sales at the company, said the move was regrettable but necessary to secure long-term growth.
WANdisco recently confirmed that the significant "irregularities" surrounding one senior salesperson and their received purchase orders, related revenue and bookings, was likely to have created a £12m hole in the company's accounts. Investors were told the findings of the investigation - performed by external consultants FRP Advisory - could knock WANdisco's 2022 unaudited revenue from about £19.2m ($24m) to just £7.7m ($9.7m) - raising concerns about the company's future as a going concern.
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Now, following a review, the firm says redundancies are necessary across its international operations and that staff were being consulted already. WANdisco shares are currently suspended on London's junior AIM market although the firm said it continued to trade as normal, with a view to lifting the suspension as soon as possible.
Kenneth Lever, executive chairman of WANdisco plc, 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."
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