\n<\/p>\n
Despite a rise in cyberattacks and breaches, the cybersecurity industry is by no means exempt from the uncertainty inspired by the current economy.<\/p>\n
2023 will likely be remembered as the \u201cyear of the layoff.\u201d While many expected the tide to shift after a rough 2022 that saw more than 130,000 tech workers lose their jobs, these unsettling workforce reductions only worsened this year as the industry continued to battle economic uncertainty. TechCrunch has comprehensively tracked these layoffs<\/a>, which have so far seen more than 240,000 jobs lost across the past 12 months alone, a hefty increase over 2022.<\/p>\n The cybersecurity sector was once largely untouched by the vast headcount reductions taking place across the wider industry, but 2023 shows no sector is immune. Cybersecurity is not the worst affected sector \u2014 that unfortunate accolade appears to have been claimed by the transportation industry<\/a>. But it\u2019s clear that cybersecurity firms are no longer exempt from layoffs, despite a strong workforce and an ever-increasing number of cyberattacks and breaches.<\/p>\n According to data from layoffs tracker Layoffs.fyi<\/a>, more than 110 cybersecurity companies have made cuts since the beginning of 2023. We\u2019ve rounded up some of the most notable.<\/p>\n TechCrunch learned in January that the Britain-based security company Sophos was starting the year with layoffs affecting 10% of its global workforce<\/a>, or about 450 employees. TechCrunch first learned of the layoffs after hearing of several employees in India who were let go. Sophos blamed the cuts on a \u201cchallenging and uncertain macro environment.\u201d In a statement, the company said it was making the move in part to \u201cachieve the optimal balance of growth and profitability to support Sophos\u2019 long-term success\u201d while shuffling its headcount to \u201csupport our strategic imperative to be a market leader in delivering cybersecurity as a service.\u201d<\/p>\n Cybersecurity firm Bishop Fox laid off around 50 employees, or 13% of its workforce, in May \u2014 just days after the company threw a party at the RSA security conference<\/a> featuring custom-branded beverages. Bishop Fox, which counted approximately 400 employees prior to the cuts, said at the time that it \u201cproactively made these changes in response to the global economic situation and opportunities we identified to make our business more efficient.\u201d The company claimed that while demand for its cybersecurity products remained solid, \u201cwe can\u2019t ignore market uncertainty and investment trends in this very different global economy.\u201d<\/p>\n U.K. cybersecurity giant NCC Group confirmed in August that it was making further cuts to its workforce, just months after it laid off 7% of staff, or 125 employees, based in the U.K. and across North America. TechCrunch learned of the second round of layoffs from a person with knowledge, and NCC later said that it was letting go of a \u201csmall number\u201d of employees<\/a> in response to \u201cchanging market dynamics and client demands.\u201d<\/p>\n Rapid7, a similarly established U.S. cybersecurity firm, also announced job cuts in August. The company announced plans to lay off 18% of its workforce<\/a>, affecting more than 400 global employees, which it said was a necessary effort \u201cdesigned to improve operational efficiencies, reduce operating costs and better align the company\u2019s workforce with current business needs.\u201d At the time, Rapid7 \u2014 which describes itself as a \u201chybrid-first\u201d organization\u201d \u2014 said it also planned to permanently close certain office locations as a result of the restructuring.<\/p>\n August also saw sweeping layoffs at HackerOne<\/a>, a widely known bug bounty and penetration testing platform. The San Francisco-based startup announced that it was cutting up to 12% of its workforce, or approximately 50 employees, impacting staff based in the United States, Canada, the United Kingdom, the Netherlands and other countries. HackerOne raised close to $160 million since its inception in 2012, but blamed the cuts on the macroeconomic climate. \u201cThese actions are necessary to be successful long-term,\u201d HackerOne CEO M\u00e5rten Mickos said in an email to affected employees, calling the workforce reduction a \u201cone-time event.\u201d<\/p>\n Rounding out a relentless month of layoffs, Malwarebytes laid off 100 employees around the world<\/a> as it prepared for a corporate restructuring that saw the business split into two<\/a>. The layoffs came almost exactly a year after Malwarebytes eliminated 14% of its global workforce<\/a>. TechCrunch learned of the cuts from a former employee, who said that the layoffs were made just weeks after several members of the company\u2019s C-suite were let go. While many cybersecurity firms blamed economic headwinds for reductions in headcount, Malwarebytes CEO Marcin Kleczynski told TechCrunch that the layoffs were an exercise in rationalizing expenditures. Kleczynski said the company continued to be \u201chealthy and profitable.\u201d<\/p>\n IronNet, a once-promising cybersecurity startup founded by former NSA director Keith Alexander, laid off all of its remaining staff<\/a> as it prepared to shutter the faltering business in October. In a regulatory filing, IronNet\u2019s president and chief financial officer Cameron Pforr said the company had ceased all business activities as it prepares for Chapter 7 bankruptcy, effectively liquidating the company\u2019s remaining assets to pay its remaining debts.<\/p>\n<\/p><\/div>\nSophos cuts 10% of global workforce, or 450 employees<\/h2>\n
Bishop Fox made ill-timed cuts after throwing conference party<\/h2>\n
NCC Group conducts two rounds of layoffs months apart<\/h2>\n
Rapid7 laid off hundreds of employees, shutters offices<\/h2>\n
Bug bounty giant HackerOne makes cuts \u2018necessary\u2019 for long-term survival<\/h2>\n
Malwarebytes let go of 100 employees ahead of company split<\/h2>\n
IronNet shut down after extensive layoffs<\/h2>\n