Xero axes up to 800 jobs as tech downturn deepens

Accounting software maker Xero has become the latest technology company to announce major staff cuts, telling investors on Thursday it would axe up to 800 roles.

Xero employed 4915 people in September last year, according to its latest company filings, which means the cuts represent about 16 per cent of its global workforce. It’s not clear yet how many positions will be affected in Australia.

Xero CEO Sukhinder Singh Cassidy said the job cuts were “difficult but necessary steps”.
Xero CEO Sukhinder Singh Cassidy said the job cuts were “difficult but necessary steps”.Credit:AFR

The move highlights the deepening downturn in the technology sector, which surged in the pandemic amid record-low interest rates and intense investor demand but has now come back to earth. Australia’s most successful technology company, Atlassian, said it would cut about 500 positions earlier this week.

In a statement to the ASX, Xero said it expected its expenses-to- revenue ratio would significantly increase next financial year but that the job cuts, which will affect between 700 and 800 positions, would streamline its business and improve profitability.

Xero’s chief executive Sukhinder Singh Cassidy said the decision to cut jobs had not been made lightly. “Today’s decision does not take away from the significant contributions from everyone at Xero,” Cassidy said.

More to come.

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Source: Thanks smh.com