Lacework has 1,174 employees listed on LinkedIn as of May 27, 2022. The cuts impacted 20% of employees, Protocol reported.
The move reinforces a bigger-picture trend across Silicon Valley: Amid rising interest rates, falling stock prices and tepid demand for IPOs, money-losing technology startups are revising their business plans to accelerate a path to profits.
Lacework Layoffs: Pivoting Toward Profitability
In a blog about the Lacework layoffs, the company said:
"We have adjusted our plan to increase our cash runway through to profitability and significantly strengthened our balance sheet so we can be more opportunistic around investment opportunities and weather uncertainty in the macro environment. We remain 100% committed to continued best-in-class growth and leading the industry with our innovation."
Lacework disclosed the news in one-on-one meetings before announcing the cuts publicly. The Lacework layoffs surface only about six months after the company raised $1.3 billion at a valuation of $8.3 billion.
Lacework's cloud security platform "automates cloud security at scale," the company asserts. The system can "collect, analyze, and accurately correlate data across an organization’s AWS, Azure, GCP, and Kubernetes environments, and narrow it down to the handful of security events that matter."
Lacework: Initial MSSP Partners
The Lacework partner program serves technology partners, cloud service providers, channel partners and MSSPs. Key MSSP partners include Defiance Digital, Expel, Geller Advisors, Observian and Pareto Cyber, according to the Lacework website.