Internal emails and messages leaked to 1News reveal outrage at New Zealand company Xero, after the organisation announced 700-800 jobs will be cut globally in a bid to improve profits.
Employees were told in an email from the new chief executive that consultation would begin for the roles that would potentially be impacted.
Staff were also told that those leaving would receive support, including a minimum of 12 weeks pay, would be given their existing laptops, and would be offered support for three months after their leaving date.
However several staff have expressed confusion, after being called into meetings, and leaving with the impression that their roles were being terminated immediately.
Xero, which was founded and is based in Wellington, has undergone significant changes recently with Silicon Valley executive Sukhinder Singh Cassidy taking over at the end of last year.
One source who has been affected by the layoff announcement told 1News that the appointment signalled a significant shift in values.
"The company has lost its Kiwi roots and is just another Silicon Valley company, and New Zealanders should know that,” they said.
Speaking on the condition of anonymity, they said the new CEO “ramped up” pressure to hit targets, and that they thought planning for the new financial year had “very little to do about customers.”
“To be clear, this is what a lot of San Francisco based tech companies do and it works for some, but it hasn’t been the bread and butter of Xero, and it certainly doesn’t line up with the external image.”
“A lot of Kiwis and Aussies would likely be surprised to hear just how American the company has become, especially when for so long it was a great example of Kiwi ingenuity globally.”
The long-serving employee from New Zealand said that the situation had left them shocked, and that the treatment went against the company's values.
“Given my time at Xero and the fact that I am a New Zealander, yes, there has been a shift in the last few years, but I would say more to becoming a corporate rather than becoming a non-New Zealand (company), if that makes any sense," they said.
Confusion over roles
The employee said the main issue staff have is the confusion around the future of their roles.
“I left that initial meeting, feeling like I just lost my job, but then just seeing some of the comments that people have been making internally and talking about consultation, I heard that word, but I don't know if it was a general statement of what was for me, I haven't received in writing what they said to me.”
“So I now don't know if there's a consultation process for me, or if it's an exit process for me.”
1News has also seen internal messages where Linda Shearer, executive general manager for people experience told staff that some had “misinterpreted the potential impacts to their role”.
She wrote that while a “very small number” of staff had been given immediate notice, the vast majority of staff would enter consultation over their employment.
However, other staff were quick to respond to the clarification, with one reply that “if multiple people “misunderstood” then it seems that it is not a misunderstanding on our part, but is a miscommunication on Xero’s part".
One other staff member wrote that “more time and effort should have been spent to make sure things were crystal clear”.
Another person wrote that “this is not the Xero I joined back in 2014,” and said “nothing of how this was handled aligns with the company’s values.”
Xero responds
Below is a statement from a Xero spokesperson:
"Our priority is to support our people through this difficult but necessary change for Xero. We take our purpose and values seriously. We are engaging with each employee whose role may be impacted, having direct conversations, and providing them with the support they require.
"There is a well considered global process underway. We have begun a consultation process with our employees to seek their feedback on the proposed changes, before confirming outcomes. Support is available to all employees, whether their role is potentially impacted, or not.
"Xero’s headquarters remain in New Zealand - this is our heritage market - and we are listed on the ASX. We are committed to caring for all our people who will potentially leave our business, with a globally consistent approach. Full details are outlined in the message sent by Xero’s CEO to all employees last week, published on the Xero blog."
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