4th May 2023 12:44
(Alliance News) - WANdisco PLC on Thursday said that it will be cutting its global headcount by about 30%.
The Sheffield, England-based data migration platform has taken heat in recent months amid a fraud investigation into the company accounts.
On Thursday, WANdisco said it is cutting its workforce across all areas of its operational and geographic footprint. It noted that "individuals impacted are being consulted in accordance with local law with the provision of support and information on next steps."
"The company has conducted a detailed review of the business, which has indicated the need for difficult but necessary changes to the company's size in order to position the company for long-term growth and success," it added.
Further, WANdisco said it continues to trade in the ordinary course of the business, and also continues towards lifting its share suspension "as soon as".
In March, WANdisco suspended trading in its shares after uncovering signs of possible "sophisticated" fraudulent activity, just days after the company had announced it was exploring a potential US listing.
As a result, WANdisco commissioned an independent investigation by FRP Advisory.
At the time, WANdisco said the irregularities would "significantly impact" its cash position and lead to "material uncertainty" regarding its overall financial position.
In April, the company said the investigation so far had confirmed that both the purchase orders giving rise to revenue of USD14.9 million and sales bookings of USD115.5 million recorded for 2022 were false.
Accordingly, it said 2022 revenue should have been USD9.7 million and not USD24 million as previously reported. Bookings should have been USD11.4 million, instead of USD127 million.
WANdisco then confirmed that all of the purchase orders associated with the senior sales employee in question are illegitimate. However, all of the other purchase orders are legitimate.
Executive Chair Kenneth Lever 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."
By Sophie Rose, Alliance News reporter
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