News: XRO UPDATE 1-New Zealand's Xero to cut up to 800 jobs globally

(Adds context on job cuts, details on cost reduction program)

March 9 (Reuters) - Cloud-based accounting software company Xero Ltd (XRO) said on Thursday it will slash 700 to 800 roles globally as a part of its cost-reduction program.

According to analysts at E&P Financial, it's an about 16% cut to total workforce that will likely lead to about "7%-8% cost base reduction" over time, once annualized fully.

Xero's update comes amid a string of layoffs across big technology companies globally as they look to rein in costs amid a fading pandemic-led boost in demand.

The Wellington-headquartered company also said it plans to exit cloud-based lending platform Waddle, acquired in 2020, and expects to incur a write down of NZ$30 million to NZ$40 million in the current financial year as a result.

It said charges associated with its restructuring program are expected to be NZ$25 million ($15.27 million) to NZ$35 million and likely will not have any material impact on cash flow in fiscal 2023.

Xero maintained its forecast of total operating expenses as a percentage of operating revenue for fiscal 2023 to be towards the lower end 80-85% range, adding that it is targeting an operating expense to revenue ratio of around 75% in fiscal 2024. ($1 = 1.6372 New Zealand dollars)