Scandal-hit WANdisco PLC is set to lay off roughly 30% of its workforce as the UK and US software group continues to deal with a Financial Conduct Authority (FCA) probe into its accounting practices.
The regulator is looking into a potential "material misstatement" of its true financial position after an internal examination uncovered over US$115mln in unaccounted-for bookings, leading to the stepping down of chief executive David Roberts and finance boss Erik Miller.
WANdisco stated that the potentially fraudulent accounting was traced back to a single employee, but the fallout has escalated regardless.
WANdisco, which had 159 employees when it last published its annual report over a year ago, will be cutting jobs across all regions and business areas, including offices in Newcastle, Belfast, China, South Korea, Japan, and Australia.
Executive chair Kenneth Lever insists that the layoffs are a necessary step for WANdisco.
“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,” said Lever.
“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."
It remains to be seen whether WANdisco will be able to recover from its recent troubles and regain its position as a leading player in the software industry.
WANdisco shares have been suspended since the onset of the controversy.