Cybersecurity expertise developer IronNet Friday stated in a regulatory submitting that the corporate is within the technique of shedding about 55 of its staff, or about 17 % of its complete headcount, in an motion anticipated to be full by the tip of this month.
With the motion, IronNet turns into the newest in a string of safety expertise builders, primarily startups, which have unveiled main layoffs, signaling that valuations within the cybersecurity area could have peaked.
McLean, Va.-based IronNet, which was based in 2014, didn’t disclose in its submitting with the U.S. Securities and Alternate Fee the precise purpose for the layoffs.
[Related: With Latest Layoffs, Is The Cybersecurity Startup Bubble Bursting?]
“The workforce discount is a part of a broader plan by the Firm to streamline its operations for greater effectivity, to cut back general bills and protect money, and to set the Firm up for rationalized progress going ahead,” the corporate wrote.
An IronNet spokesperson replied by way of e-mail to a CRN request for extra info by noting that the corporate in its first fiscal quarter 2023 monetary convention name that IronNet deliberate to guage all bills to speed up the timeframe to attain a money circulate impartial monetary place into subsequent yr. In its SEC submitting, the corporate additionally stated IronNet additionally sees no change to its outlook or buyer pipeline because it seems to extend effectivity and set the corporate up for rationalized progress going ahead.
“Our technique stays the identical, to rework cybersecurity by way of Collective Protection,” the spokesperson wrote. “In actual fact, we’ve seen momentum across the idea of Collective Protection up to now a number of quarters, with President Biden and his cyber consultants even referring to it as the trail ahead.”
Information of the layoffs come lower than two weeks after IronNet launched its first fiscal quarter 2023 financials. The corporate on June 14 reported income for the quarter, which ended April 30, of $6.7 million, up barely year-over-year from final yr’s $6.4 million. It additionally reported annual recurring income of $30.1 million, up year-over-year from $25.6 million.
Nonetheless, IronNet additionally reported a GAAP internet loss within the quarter of $33.2 million, up considerably from the online loss it reported final yr of $15.5 million. On a non-GAAP foundation, the corporate reported a internet lack of $21.4 million, up from final yr’s internet lack of $14.9 million.
Firm executives, of their quarterly monetary analyst convention name, stated the drop in income was due largely to delays in renewing contracts by a few massive clients.
Information of layoffs at IronNet and lots of of its friends comes at a time when labor markets are tight, making it tough for a lot of firms, particularly within the tech business, to search out sufficient expertise.
But regardless of the tight job market, layoffs within the safety startup area have been rising.
Atlanta-based OneTrust in mid-June stated it has laid off about 950 folks, or about 25 % of its staff.
Boston-based Cybereason in early June stated it has laid off 10 % of its workforce solely 4 months after it confidentially filed for an IPO and fewer than a yr after it raised an extra $325 million in funding. Cybereason has raised about $700 million in funding since its founding in 2012.
Softbank was a serious investor in each OneTrust and Cybereason.
San Jose, Calif.-based cybersecurity expertise developer Lacework in late Could stated it is going to lay off about 20 % of its workforce. The layoffs got here six months after the corporate unveiled a $1.3-billion D-round of funding, giving it a valuation of $8.3 billion. Lacework in February stated it has over 1,000 staff.
June additionally noticed New York-based safety startup Deep Intuition lay off a reported 10 % of its workforce, whereas safety startup Automox laid off a reported 75 folks, or about 18 % of its headcount.
Mark Hatfield, a founder and basic companion of Ten Eleven Ventures, final month informed CRN that cybersecurity stays a strong long-term guess for traders, however acknowledged that cybersecurity startup valuations reached their peak about 5 – 6 months in the past and have been falling ever since.