Cybereason Layoffs: Lacking Near-Term IPO Option, Security Software Company Cuts Staff
Cybereason layoffs will impact roughly 100 employees across Israel, the United States and Europe, according to Calcalist. The Cybereason job cuts represent about 10% of the endpoint security company’s staff, Information Security Media Group reported.
The Cybereason staff cuts arrive as the endpoint security company strives to march toward a potential initial public offering (IPO). The Cybereason IPO plan, which surfaced in February 2022, pointed to a potential valuation of $5 billion.
However, some startup valuations have plummeted in recent months as some investors shifted their preference from hyper revenue growth to reliable profit growth. That investor mind-shift has made it extremely difficult for growth-first startups to explore IPO waters.
In a statement about the layoffs, a Cybereason spokesperson told Information Security Media Group:
“This was an extremely difficult decision. As the bullish tech market conditions have turned and the tech IPO market has essentially closed, companies like us must now exercise more strict financial discipline and prioritize profitability over topline growth.”
Cybereason: Security Market Focus, MSP and MSSP Partnerships
Cybereason competes against dozens of security companies, including CrowdStrike and SentinelOne — two fast-growing EDR (endpoint detection and response) software companies that have a growing base of MSP and MSSP partnerships.
Cybereason was very active building MSP and MSSP partnerships from about February 2021 through January 2022. Key moves included:
- February 2021: Cybereason hired several executives as part of its efforts to grow its channel partnerships.
- April 2021: The company unveiled a North American MSSP partner program that blends managed detection and response (MDR), threat hunting, endpoint protection and more.
- July 2021: Cybereason unveiled The Cyber Defenders League global partner program for MSSPs, resellers and other technology providers.
- January 2022: The company unveiled a Pay as You Grow option for MSPs and MSSPs.
More recently, Cybereason hasn’t said much about is MSP, MSSP and channel partner strategy.
Cybereason Cloud Security Capabilities
Meanwhile, new product and service launches continue. For instance, the company in February 2022 announced Cybereason XDR (eXtended detection and response) for Cloud Workloads. The service is designed to help organizations protect their cloud workloads and containers across native and hybrid cloud environments at petabyte scale, the company indicated.