SecureWorks will lay off approximately 15% of its workforce. The move is part of the company’s broader restructuring initiative aimed at optimizing its cost structure and better aligning its business strategy with growth opportunities.
In a regulatory filing with the SEC, the underlying motive for the restructuring plan is to rebalance SecureWorks' investments cross-functionally. The plan also includes real estate-related cost optimization actions, according to the filing.
The Bottom Line
The financial ramifications of the Plan are significant. SecureWorks estimates it will incur expenses amounting to approximately $14.2 million. A substantial chunk of these expenses is projected to lead to future cash expenditures. Most of the costs are expected to be in the form of severance and other termination benefits, plus real estate-related expenses.
SecureWorks projects the recognition of these expenses to take place during the second quarter of fiscal year 2024.
The news follows a similar announcement made in February when the company said it would cut 9% of its workforce.
The restructuring will aim to optimize the organizational structure of SecureWorks to increase its scalability, among other priorities.
The overarching goal is to bolster the company's position in the market, ensuring continued growth while improving operating margins in the foreseeable future, according to the filing.
Tech Industry Layoffs
SecureWorks is just the most recent in a string of tech companies to announce similar layoffs.
Earlier this month, Rapid7 announced a restructuring plan following disappointing second-quarter results, resulting in the layoffs of about 18% of the company’s workforce.
Similarly, AppSec firm Snyk laid off 128 people in April. Cloud security vendor Zscaler announced layoffs after what it called a rough fiscal second quarter. Software tools giant Atlassian laid off 5% of its workforce as it “shifted priorities.”
Accenture axed 19,000 jobs last month, and Veeam laid off 3.8% of its workforce.
Oxford, U.K.-based platform security vendor Sophos in January laid off 10% of its staff, or 450 workers while San Francisco-based identity security giant Okta axed 5% of its workers – or roughly 300 employees in February.
