Security Experts:

Connect with us

Hi, what are you looking for?


Application Security

Billion-Dollar Valuations Can’t Halt Layoffs at OneTrust, Cybereason

Two cybersecurity vendors that recently boasted of raising hundreds of millions of dollars at unicorn valuations have confirmed staff cuts as the turmoil in the capital markets start to wreak havoc on late-stage startups.

Two cybersecurity vendors that recently boasted of raising hundreds of millions of dollars at unicorn valuations have confirmed staff cuts as the turmoil in the capital markets start to wreak havoc on late-stage startups.

The two vendors — OneTrust and Cybereason — banked a combined $575 million since 2020 and have deliberately boasted about billion-dollar valuations in an expanding cybersecurity market. Now, with macro economic headwinds on the front-burner, the layoffs and pre-emptive belt-tightening at these two well capitalized startups suggest the industry could be in for a long economic slog.

OneTrust chief executive Kabir Barday acknowledged the obvious in a public note confirming layoffs affecting 25 percent of its workforce (950 employees were let go).

“I know this news is surprising, especially as you heard last month that the business is on track with record quarters and increasing customer demand. However, capital markets sentiment shifted to a more balanced approach between growth and profitability, and at this time, we have decided the best course of action is to reorganize to position OneTrust for continued long-term success,” Barday said.

[ READ: Privacy Tech Firm OneTrust Secures $300M at $5.1B Valuation

“While evaluating all potential scenarios created by these changes, it is critical to be proactive, and this [workforce] reduction is the solution we chose to help us meet the new challenges ahead of us,” he added.

OneTrust, which hawks privacy, security, and data governance technology, raised $300 million in a Series C round in December 2020 that came with the public boast that the company’s valuation had reached a whopping $5.1 billion.

To date, OneTrust has raised approximately $925 million from several prominent venture capital investors and the company’s CEO says its customer base has crossed 12,000 organizations.

Like OneTrust, Cybereason also did the media tour recently to boast of its fund-raising prowess and multi-billion dollar “unicorn” valuations but macroeconomic headwinds have forced the endpoint detection and response (EDR) vendor to slash 10 percent of staff (100 employees).

[ READ: What’s Behind the Surge in Cybersecurity Unicorns? ]

The Israel-based Cybereason, which recently completed a Google Cloud partnership that came with a reported $50 million investment from Google, has raised a total of $750 million in funding.

In an interview with CNBC, Cybereason chief executive Lior Div said the layoffs and cutbacks were necessary to navigate capital markets turbulence. Cybereason was on track for an IPO after securing a $3 billion valuation in its latest round of financing but the fast-changing landscape has killed those plans and Div said the company proactively decided to reduce expenses and preserve cash.

In addition to OneTrust and Cybereason, so-called ‘unicorn’ Lacework also cut 20 percent of its workforce (250 employees) and contractions have hit home at Mozilla (250 employees laid off) and the Tor Project.

Analysts and security leaders polled at this week’s RSA Conference in San Francisco are expecting to see more layoffs as entrepreneurs look to hoard cash in an uncertain funding climate.

Related: What’s Behind the Surge in Cybersecurity Unicorns?

Related: Mozilla Cybersecurity Staff Hit by Layoffs

Related: Privacy Tech Firm OneTrust Secures $300M at $5.1 Billion Valuation 

Related: Cybereason Raises $275 Million to Fuel Growth 

Written By

Ryan Naraine is Editor-at-Large at SecurityWeek and host of the popular Security Conversations podcast series. He is a security community engagement expert who has built programs at major global brands, including Intel Corp., Bishop Fox and GReAT. Ryan is a founding-director of the Security Tinkerers non-profit, an advisor to early-stage entrepreneurs, and a regular speaker at security conferences around the world.

Click to comment

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

Join this webinar to learn best practices that organizations can use to improve both their resilience to new threats and their response times to incidents.


Join this live webinar as we explore the potential security threats that can arise when third parties are granted access to a sensitive data or systems.


Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Data Protection

The CRYSTALS-Kyber public-key encryption and key encapsulation mechanism recommended by NIST for post-quantum cryptography has been broken using AI combined with side channel attacks.


Less than a week after announcing that it would suspended service indefinitely due to a conflict with an (at the time) unnamed security researcher...

Data Protection

The cryptopocalypse is the point at which quantum computing becomes powerful enough to use Shor’s algorithm to crack PKI encryption.


The changing nature of what we still generally call ransomware will continue through 2023, driven by three primary conditions.


WASHINGTON - Cyberattacks are the most serious threat facing the United States, even more so than terrorism, according to American defense experts. Almost half...

Application Security

PayPal is alerting roughly 35,000 individuals that their accounts have been targeted in a credential stuffing campaign.


No one combatting cybercrime knows everything, but everyone in the battle has some intelligence to contribute to the larger knowledge base.