Forescout Technologies is seeking a new CEO amid an undisclosed number of layoffs at the private equity-owned cybersecurity company.
Current CEO Wael Mohamed will remain in that post until a successor is found, Forescout announced in a blog post. Deep in that post, the cybersecurity company hinted at layoffs -- stating:
"Though we are in a strong position, like many companies in the technology industry today, we continue to optimize our cost base to prepare for difficult economic times over the next period to ensure the future success of Forescout."
Actual layoff figures were not disclosed, though the company confirmed a targeted workforce reduction, Information Security Media Group reported.
Cybersecurity Industry Layoffs, Economic Headwinds (And Silver Linings)
Still, it's important to put the headcount reductions in place. The overall cybersecurity market continues to grow. And some cybersecurity companies have been announcing better-than-expected financial results. A case in point involves Check Point Software Technologies.
Nevertheless, the cybersecurity market faces multiple economic headwinds -- including rising interest rates, stubbornly high inflation, and closed IPO (initial public offering) windows that are pressuring some venture- and private equity-backed companies.
Private Equity Owner Points to Forescout Progress
Private equity firm Advent International acquired Forescout Technologies for $1.4 billion in 2020. Forescout is quick to emphasize the company's business progress under Advent's ownership. Among the financial anecdotes the security company shared:
- Forescout was not profitable and 49% of annual revenue was recurring in 2019.
- The company expects to be profitable and 80% of its annual revenue will be recurring in 2022.
Some of the revenue, profit and recurring revenue progress likely involves Forescout acquisitions such as threat detection and response company Cysiv in June 2022 and IoT medical device security firm CyberMDX in early 2021.
Forescout has 1,031 employees listed on LinkedIn.