Cybersecurity won’t be immune to brutal layoffs in 2023

Despite the increase in cyberattacks and breaches, the cybersecurity industry is not immune to the uncertainty caused by the current economy.

2023 may be known as the “year of layoffs.” While many expected the trend to turn after a tough period in 2022 that saw more than 130,000 tech workers lose their jobs, these troubling workforce cuts come as the industry continues to grapple with economic uncertainty this year. It will only get worse. TechCrunch has tracked these layoffs comprehensively, and so far, more than 240,000 jobs have been lost in the past 12 months alone, a significant increase from 2022.

The cybersecurity industry was once largely immune to mass layoffs across the industry, but 2023 has shown that no industry is immune. Cybersecurity isn’t the worst-affected industry—that unfortunate honor seems to go to the transportation industry. But it’s clear that cybersecurity companies are no longer immune to layoffs, despite their strong workforces and rising cyberattacks and breaches.

More than 110 cybersecurity companies have laid off employees since the beginning of 2023, according to layoff tracking website Layoffs.fyi. We’ve rounded up some of the most notable companies.

Sophos cuts 10% of its workforce, or 450 employees, globally

TechCrunch learned in January that British security company Sophos would lay off employees early this year, affecting 10% of its global workforce, or about 450 employees. TechCrunch learned of the layoffs after hearing about the layoffs of several employees in India. Sophos blamed the layoffs on a “challenging and uncertain macro environment.” The company said in a statement that the move was made in part to “achieve the optimal balance of growth and profitability to support Sophos’ long-term success” while reorganizing headcount to “support our strategic mission to be a market leader, Cybersecurity as a service.”

Bishop Fox makes untimely spending cuts after hosting conference

Cybersecurity company Bishop Fox laid off about 50 employees, or 13% of its workforce, in May, just days after the company hosted a party featuring custom branded drinks at the RSA security conference. Bishop Fox, which had about 400 employees before the layoffs, said at the time that the company was “proactively making these changes in response to global economic conditions and opportunities we identified to improve business efficiencies.” The company claimed that while its cybersecurity products Demand remains strong, but “we cannot ignore market uncertainty and investment trends in this very different global economy.”

NCC Group conducts two rounds of layoffs several months apart

British cybersecurity giant NCC Group confirmed in August that it would further cut jobs, just months after laying off 7% of its workforce, or 125 employees, in the UK and across North America. TechCrunch learned of the second round of layoffs from people familiar with the matter, and NCC later said it was laying off a “small number” of employees in response to “changing market dynamics and customer needs.”

Rapid7 lays off hundreds of employees, closes offices

Rapid7, a similar U.S. cybersecurity company, also announced layoffs in August. The company announced plans to lay off 18% of its workforce, affecting more than 400 employees worldwide, and said it was a necessary effort “aimed at improving operational efficiency, reducing operating costs, and enabling the company’s employees to better adapt to current business needs.” At the time, Rapid7, which described itself as a “hybrid-first” organization, said it also planned to permanently close certain locations as a result of the restructuring.

Bug bounty giant HackerOne sees spending cuts as ‘necessary’ for long-term survival

In August, there were also major layoffs at HackerOne, a well-known bug bounty and penetration testing platform. The San Francisco-based startup announced it will lay off 12% of its employees, or about 50 employees, affecting employees in the United States, Canada, the United Kingdom, the Netherlands and other countries. HackerOne has raised nearly $160 million since its founding in 2012, but blamed the funding cuts on macroeconomic conditions. “These actions are necessary for long-term success,” HackerOne CEO Mårten Mickos said in an email to affected employees. He called the layoffs a “one-time event.”

Malwarebytes lays off 100 employees ahead of company spin-off

Malwarebytes has laid off 100 employees globally after a month-long layoff as it prepares to reorganize the company and split the business in two. The layoffs come almost a year after Malwarebytes laid off 14% of its global workforce. TechCrunch learned of the layoffs from a former employee, who said the layoffs come just weeks after several members of the company’s top management were fired. While many cybersecurity companies blame the layoffs on economic headwinds, Malwarebytes CEO Marcin Kleczynski told TechCrunch the layoffs were an effort to rationalize spending. Kleczynski said the company remains “healthy and profitable.”

IronNet shuts down after massive layoffs

IronNet, a once-promising cybersecurity startup founded by former NSA director Keith Alexander, laid off all remaining employees as it prepared to shut down the faltering operation in October. staff. IronNet President and Chief Financial Officer Cameron Pforr said in a regulatory filing that the company has ceased all business activities in preparation for Chapter 7 bankruptcy, effectively liquidating the company’s remaining assets to pay off remaining debt .