Menu
Xero sheds up to 800 staff, exits Waddle business

Xero sheds up to 800 staff, exits Waddle business

Exiting Waddle business will incur a $30 to-$40 million write-down

Singh Cassidy (Xero)

Singh Cassidy (Xero)

Credit: Xero

New Zealand-founded Xero is reducing 700 to 800 roles across its organisation in an effort to reshape its structure.

Part of its plan also includes exiting cloud-based lending platform Waddle, which it acquired in 2020 that will incur a $30 to $40 million write down in FY23.

“These are difficult but necessary steps as we work to further strengthen Xero for the future, while carefully balancing the interests of all our stakeholders,” CEO Sukhinder Singh Cassidy said.

“We don’t take these decisions lightly and we recognise today is a hard day for our people. Today’s announcement does not take away from the significant contributions of everyone at Xero. We take our purpose and values seriously, and are committed to working closely with each impacted employee and providing them with the right level of support.”

The headcount reductions will improve Xero’s operating profitability as its operating expense-to-revenue ratio is expected to reduce significantly for FY24. 

In a statement to shareholders, publicly listed Xero said these changes will allow the company to better prioritise resources to deliver for all stakeholders in the short and long term. 

“As we aspire to build a high-performing global SaaS company and to enable Xero’s next phase of growth and drive better customer outcomes, we need to streamline and simplify our organisation,” Singh said. 

“These changes, and our decision to re-invest 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.”


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags xero

Events

SustainTech

Join key decision-makers within Environmental, Social, and Governance (ESG) that have the power to affect real change and drive sustainable practices. SustainTech will bridge the gap between ambition and tangible action, promoting strategies that attendees can use in their day-to-day operations within their business.

EDGE 2023

EDGE is the leading technology conference for business leaders in Australia and New Zealand, built on the foundations of collaboration, education and advancement.

WIICTA 2023

ARN has celebrated gender diversity and recognised female excellence across the Australian tech channel since first launching WIICTA in 2012, acknowledging the achievements of a talented group of female front runners who have become influential figures across the local industry.

ARN Innovation Awards 2023

Innovation Awards is the market-leading awards program for celebrating ecosystem innovation and excellence across the technology sector in Australia.

Show Comments