On Thursday, the new CEO of cloud accounting software company Xero announced a cost-cutting strategy that would include up to 800 job cuts and a renewed focus on profitability.
Investors were anticipating the move, but it happened sooner than expected, as Sukhinder Singh Cassidy, who had been in the top job for only five weeks, began implementing the cost-cutting strategy by announcing up to 800 job cuts. Despite the job cuts, investors responded positively by pushing up the company’s shares by over 10 percent.
Joining a growing list of multibillion-dollar tech firms, the ASX-listed company has announced staff cuts in order to improve profitability, extend their capital runways, or counteract a slowdown in sales.
Last month, grocery delivery start-up Milkrun was forced to lay off 20% of its staff, while earlier this week, Atlassian announced its plans to make 500 staff redundant.