Aqua Safety lays off 10% of its workforce, citing altering financial system

December 06, 2022, 3:04 PM EST

The cloud-native safety agency is simply the most recent cybersecurity startup to implement workforce reductions amid unsure economics

Aqua Safety has change into the most recent cybersecurity agency to announce layoffs.

The cloud-native safety agency, which has raised $265 million in funding since its founding seven years in the past and reached a valuation of $1 billion final 12 months, has laid off 65 workers, or about 10 % of its workforce, attributable to financial developments. situations.

In a memo to workers, Dror Davidoff, the corporate’s chief government, stated his firm had “adopted our path of accountable progress” in recent times because the financial system as an entire grew and demand for merchandise safety elevated.

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However Davidoff stated these growth-focused days are over for now at Aqua Safety, which has main workplaces in Burlington, Mass. and Tel Aviv, Israel.

“As financial situations change, we discover ourselves as soon as once more centered on the accountable path,” he wrote. “We have to take a look at profitability AND progress, and rebalance for the brand new actuality. Because of this, I wish to share with you the steps we now have taken to attain this objective.

Amongst these measures had been employees reductions.

“It saddens me deeply to say that at the moment we made modifications to our group affecting 10% of Aquarians,” Davidoff stated.

“These modifications had been essential to allow us to refocus on our core strengths and ship efficient progress in 2023 and past. Though it is a robust day for all of us, it is even more durable for these straight affected. To our Aquarians who’re leaving us, I wish to thanks to your laborious work and contributions. I’ve labored straight with a lot of you, and you’re all without end a part of the Aqua story.

He stated the corporate is “doing the whole lot we will” to assist affected staff.

“We’ll present assets and steerage that will help you with resumes, references, job search help and extra,” Davidoff wrote. “I encourage you all to indicate compassion and assist to our associates and colleagues throughout this transition.”

Dror was optimistic about the way forward for Aqua Safety, saying the modifications “set us on the trail to profitability.”

Aqua Safety is not the primary cybersecurity startup to announce layoffs attributable to unsure financial occasions.

Among the many safety startups that will likely be laid off this 12 months are Lacework (20% of the workforce), Cybereason (10% of the workforce), Synk (14% of the workforce), One Belief (25% of the workforce) and Automox (18% workforce). .

Many security layoffs have taken place at later-stage startups that anticipated to go public however needed to rein in spending after the IPO market dried up earlier this 12 months.

Different large tech corporations have introduced layoffs, however large cybersecurity corporations have largely prevented downsizing, largely attributable to intense demand for safety merchandise amid a dramatic improve in cyberattacks.

Aqua Safety was clearly in a extra growth-focused temper earlier this 12 months when it introduced it had employed Jeannette Lee Heung of Palo Alton Networks as Senior Director of International Channel and Alliances – then unveiled extra later that it had “utterly revamped” its accomplice program. in an general effort to achieve the subsequent degree of earnings.