Boston cybersecurity company Rapid7 announced a plan to eliminate 18% of its workforce, affecting 470 positions. The news comes after a further announcement of improved financials.
The company revealed in its SEC filing that the restructuring plan includes a reduction of the company’s workforce by approximately 18%. The plan is designed to “improve operational efficiencies, reduce operating costs and better align the company’s workforce with current business needs, top strategic priorities, and key growth opportunities.”
At the beginning of the year, Rapid7 had 2623 full-time employees, with 1672 employees in the US. None are covered by collective bargaining agreements. In total, around 470 positions will be eliminated.
“We believe our employee relations are good and we have not experienced any work stoppages,” Rapid7 wrote in its annual report.
The company also plans to permanently close certain office locations. The total cost of the restructuring is approximately $24-$32 million.
At the same time, Rapid7 announced that its revenues increased by 14% in the second quarter of 2023 compared to the same period the year before. Its net result amounted to $11.52 million (non-GAAP), while last year’s Q2 was unprofitable, with a loss of $0.46 million.
“While it may be surprising to take this measure when we are meeting performance expectations, making decisions from a place of strength allows us the opportunity to restructure intentionally,” Corey Thomas, Rapid7 CEO, writes in a message.
He hopes that “in order to build upon the momentum,” restructuring and near-term reduction will increase the capacity to invest, provide flexibility and “will set up our teams and customers for long-term success.”
“Every organization and location at Rapid7 will be impacted, though some teams, like engineering and sales, will experience more substantial shifts,” Thomas explained.
Rapid7 follows a trend of cybersecurity firms announcing significant layoffs. Last week the popular digital security service provider, KAPE Technologies, laid off around 200 employees. Amongst the largest announcements recently was OneTrust, which reduced its workforce by 25% or 950 employees. Meanwhile, the cloud and security services firm F5 laid off 9% of its staff, which affected 623 employees, and Sophos followed that with 10% of its headcount, or 450 employees laid off.
Layoffs were also announced at Lacework, Okta, Akamai, SecureWorks, Cybereason, and other security companies.
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