When Nuix’s new chief executive Jonathan Rubinsztein announced his strategy and new structure in late March to save the embattled forensic data analytics firm, it left staff scratching their heads.
What shocked staff more than the way the new strategy and organisational structure had been delivered was that within days of releasing it, Rubinsztein went on an overseas holiday, his second break since his ASX-announced official start of December 6.Australian Financial Review“I’m excited to be back after a few weeks’ break … I thank you all for your patience on comms since we announced our future structure,” he wrote.
Barnier left in February to become the vice-president for Asia-Pacific and Japan at Reveal Brainspace, a competitor to Nuix. Enzo Lisciotto, who headed Nuix’s eDiscovery in the APAC region, also moved to Reveal, as did Sam Mather, strategic account director in London. The post, recorded as being from the CEO, describes Nuix as “a great company with great people” and lists the pros as “great people and awesome technology” and the cons as “lots of opportunity for change”.In recent weeks, the morale fell further when it became apparent that an important part of the new strategy to generate top-line revenue growth was to significantly raise the prices of products across the board, in some cases by almost 200 per cent.
Mandating price rises of that magnitude to customers has been likened to sending the sales team to the wolves.Investors are also having a hard time trusting Nuix after being sucked into believing it was a growth stock when the cruel reality was that its revenue was declining and costs were rising. The company faces myriad litigation and legal issues as well as the monumental threat of former CEO Eddie Sheehy’s legal claim, which will come to a head soon.
Source: News Formal (newsformal.com)