Cloud security company Lacework is laying off a significant chunk of its workforce as a result of restructuring.
The firm blamed the layoffs on a “seismic shift” in public and private markets, which have forced it to restructure and change its plan.
“While we do not have control of the environment around us, we do have a responsibility to control how we operate our business and make changes as needed to best position the company for continued and long-term success,” the company said.
“We have adjusted our plan to increase our cash runway through to profitability and significantly strengthened our balance sheet so we can be more opportunistic around investment opportunities and weather uncertainty in the macro environment,” it added.
News of the layoffs came to light on Wednesday, hours before the company published a blog post explaining its decision. Gergely Orosz of The Pragmatic Engineer Newsletter broke the news when he tweeted that the company was laying off roughly 300 employees, or 20% of its workforce.
Lacework has confirmed for SecurityWeek that 20% of staff is being laid off, but said that the actual number reported on Twitter is “a significant overestimate.”
In a press release issued in March, the cloud security company said it had over 1,000 employees, 85% of which were hired after the start of the COVID-19 pandemic.
Lacework was slammed on social media for the way it handled the layoffs, but the company argued that it had delayed the broader notification to take the time to speak with each of the impacted people individually.
Several companies have offered jobs to those who were terminated by Lacework.
The layoffs were announced just months after the company raised $1.3 billion in a second Series D funding round and was valued at $8.3 billion.
Related: Is the ‘Great Resignation’ Impacting Cybersecurity?
Related: Gaining and Retaining Security Staff in The Age of the Great Resignation
Related: 3 Steps Security Leaders Can Take Toward Closing the Skills Gap
Related: With the ‘Great Resignation’ Comes the ‘Great Exfiltration’
Eduard Kovacs (@EduardKovacs) is a contributing editor at SecurityWeek. He worked as a high school IT teacher for two years before starting a career in journalism as Softpedia’s security news reporter. Eduard holds a bachelor’s degree in industrial informatics and a master’s degree in computer techniques applied in electrical engineering.
More from Eduard Kovacs
- Microsoft’s Verified Publisher Status Abused in Email Theft Campaign
- British Retailer JD Sports Discloses Data Breach Affecting 10 Million Customers
- Meta Awards $27,000 Bounty for 2FA Bypass Vulnerability
- Industry Reactions to Hive Ransomware Takedown: Feedback Friday
- US Reiterates $10 Million Reward Offer After Disruption of Hive Ransomware
- Hive Ransomware Operation Shut Down by Law Enforcement
- UK Gov Warns of Phishing Attacks Launched by Iranian, Russian Cyberspies
- Dozens of Cybersecurity Companies Announced Layoffs in Past Year
Latest News
- Sentra Raises $30 Million for DSPM Technology
- Cyber Insights 2023: Cyberinsurance
- Cyber Insights 2023: Attack Surface Management
- Cyber Insights 2023: Artificial Intelligence
- Microsoft’s Verified Publisher Status Abused in Email Theft Campaign
- Guardz Emerges From Stealth Mode With $10 Million in Funding
- How the Atomized Network Changed Enterprise Protection
- Critical QNAP Vulnerability Leads to Code Injection
