MYOB is a accounting software company. Photo / 123RF
MYOB is a accounting software company. Photo / 123RF
Staff at MYOB's New Zealand operation fear significant layoffs - with some roles outsourced to Manila, according to insiders - as the firm rejigs its support.
A spokesman for the accounting software company confirmed a restructure was underway but said only a "small number" of roles - 14 in NewZealand - were affected.
"The impacted roles are not directly replicated elsewhere," the spokesman said.
Melbourne-based MYOB has grown in part through the acquisition of a number of New Zealand companies (see below).
Its current cuts come after its owner, private equity firm KKR, put it on the block, and the second round of layoffs in the past two years.
"We're deeply committed to the New Zealand market and to helping local businesses in Aotearoa succeed," an MYOB spokesman told the Herald.
"As part of our SaaS [software as a service or "cloud"] platform evolution, we have been working through proposed changes to our AU and NZ SME Support, Operations and Workforce Operations teams. These changes are part of our efforts to deliver an accessible and efficient service and support model for our customers.
"This includes extending our online support/chat solutions and continuing to offer customer support services through our existing partner - Concentrix. However, other support roles have been maintained within the business in Australia and New Zealand."
The multinational Concentrix provides outsourced helpdesk services. It has operations in multiple countries, including the Philippines and NZ.
"Through the course of this process, we have made every effort to redeploy some of our team members to other areas of our business," the MYOB spokesman said.
"However, a small number of roles within our NZ team were impacted."
However, one source told the Herald that New Zealand-based MYOB employees were unhappy at the decision and feared more staff cuts could follow.
On the block ... again
The previously ASX-listed MYOB was bought by US private equity giant KKR in 2019 for A$2.4 billion ($2.6b).
In May 2020, amid Covid lockdowns, MYOB said it would lay off up to 130 of its then 2100 staff across Australia and New Zealand.
In July this year, KKR put MYOB on the block, with ANZ confirming it was in talks to buy the accounting software provider. Discussions have since stalled, with the bank's board reportedly turned off by a A$4b asking price.
MYOB chief executive Greg Ellis. Photo / File
Melbourne-based MYOB, which today claims around 1.2 million customers (to Xero's 3.3 million), was formed in the 1980s and has grown through acquisition - including two key deals involving New Zealand companies.
One was Auckland-based Banklink, which it bought in June 2013 for $136 million from founders Derek Jones, Malcolm MacDonald and Stephen Agnew.
The other was a A$224m deal in 2004 to acquire Solution 6 - which had recently merged with Auckland online accounting pioneer Exonet, co-founded by Maurice Bryham and Satellite Spies frontman Mark Loveys.
Banklink provided crucial automated bank feed capability, while Exonet brought cloud smarts.
MYOB also scooped up three New Zealand payroll software makers: PayGlobal for $9m in 2014, Ace Payroll for $14m the same year and IMS for $10m in 2015.
MYOB had A$502m in revenue in the year to December 31, according to a regulatory filing, and made a A$104m net loss after, pinned on a capital restructure.
The company had annual revenue of A$445m and A$190m in underlying ebitda before KKR took it private in May 2019.
