Layoffs in New Zealand

Eroad, a New Zealand-based telematics and transportation technology company, faced shareholder scrutiny during its annual meeting on July 28, 2023, amid a prolonged share price collapse and a takeover offer from Volaris, owned by Constellation Software. Chair Susan Paterson acknowledged the company's unsatisfactory performance, attributing it partly to market conditions and internal factors. While the article does not specify layoffs, the context highlights significant corporate challenges, including potential restructuring or strategic shifts as the company navigates financial pressures and a possible acquisition in the tech industry.

Vista Group, an Auckland-based cinema software company, is reducing its global workforce by 6 to 8 percent as part of a restructuring effort. This translates to approximately 64 job cuts from its total of 800 employees. The move, announced in April 2023, aims to transition the company from operating multiple entities into a single, streamlined business focused on its studio and cinema clients. This restructuring, expected to conclude by year's end, is a response to a challenging financial period, including a doubled net loss in 2022, and is designed to accelerate the path to positive free cash flow. The company also plans to spread its capital expenditure over a longer period to reduce near-term costs.

Auckland-based e-commerce software company Cin7 is laying off approximately 15% of its workforce, affecting around 45 employees out of a total of just under 300. The consultation process is concluding this week. The layoffs reflect a post-pandemic adjustment, as the company acknowledges that the explosive e-commerce growth during COVID-19 lockdowns has normalized to pre-pandemic levels amid broader economic turbulence. Founded in 2011 and owned by US private equity firm Rubicon Technology Partners since 2019, Cin7 provides inventory management solutions for businesses selling on platforms like Amazon. The company had expanded rapidly through acquisitions and hiring during the pandemic boom but is now restructuring in response to shifting market conditions and a slowdown in the sector.

Buy-now-pay-later firm Laybuy, based in Auckland, has initiated a further restructuring, resulting in layoffs affecting 10% of its staff. The company, which is due to delist from the ASX this week following a troubled period in public markets, also warned that its long-stated goal of achieving profitability this financial year is now unlikely to be met. This move, announced on March 21, 2023, is part of broader efforts to navigate its financial challenges within the competitive fintech industry.

TradeWindow, an NZX-listed trade software company, announced a significant workforce reduction on March 15, 2023, as part of a cost-cutting program. The company is planning to lay off between 25% and 35% of its employees to reduce cash usage to a more sustainable level. This decision comes after a recent capital raise fell far short of expectations, reflecting a challenging funding market for early-stage technology companies in the software-as-a-service (SaaS) industry. The layoffs aim to help the firm navigate its financial difficulties and stabilize operations.

Xero laid off 800 employees representing approximately 15% of its workforce on 2023-03-09.

Syft Technologies laid off 30 employees representing approximately 20% of its workforce on 2023-02-10.

Sharesies on 2023-02-02.

First AML on 2022-10-06.

Laybuy laid off 45 employees on 2022-07-28.