Secureworks announces layoffs for almost ten per cent of staff

The Dell Technologies majority-owned group said it’s 'shifting investments' to growth areas such as its Taegis platform

clock • 2 min read
Secureworks announces layoffs for almost ten per cent of staff

Cybersecurity firm Secureworks has told employees is cutting nine per cent of its workforce, according to a regulatory filing, a day after its majority-owner Dell Technologies announced a round of layoffs.

Secureworks did not disclose the total number of workers affected by the layoffs in the filing with the US Securities and Exchange Commission. The company last disclosed its employee headcount in a regulatory filing in March 2022, when it said that it had 2,351 employees as of January 28, 2022.

If its staff size has remained similar, the nine per cent workforce reduction would affect more than 200 Secureworks employees.

Last week, Dell Technologies announced layoffs affecting 6,650 employees, or about five per cent of its staff. Dell owned approximately 82.7 per cent of outstanding shares in Secureworks as of the end of October, according to an SEC filing.

Secureworks is joining numerous other companies in the cybersecurity industry, as well as in the tech industry overall, in cutting back on staff amid a worsening economic environment.

Other publicly traded cybersecurity vendors to cut staff have included Okta, which laid off 300 employees with a five per cent workforce reduction last week, and Sophos, which reportedly laid off 450 staff members in January.

Secureworks said in the SEC filing that it's enacting the layoffs as part of "aligning its investments more closely with its strategic priorities."

The company has shifted its focus in recent years to extended detection and response (XDR), a fast-growing category within cybersecurity that correlates security data feeds from across a customer's entire environment to help with prioritising threats.

Secureworks disclosed hitting $222m in annual recurring revenue, up 80 per cent year over year as of the end of October for its Taegis platform, which includes XDR as well as vulnerability detection and response (VDR). The growth has been buoyed by a surge in channel sales for Secureworks, executives have said.

Under its new financial plan, Secureworks "intends to rebalance investments across all functions to align with the company's top strategic priorities and growth opportunities, such as higher value, higher margin Taegis solutions and other priorities, in order to balance continued growth with improving operating margins over time," the company said in the SEC filing.

You may also like
Zoom layoffs total 150 as video giant turns attention to 'critical' areas, including AI

Vendor

Videoconferencing giant is cutting 150 jobs as it "rescopes" some roles with a focus on areas of future growth, including AI, sales and product in the latest round of 2024 tech layoffs

clock 02 February 2024 • 2 min read
Veeam layoffs hit 300 as company vows to hire 500 this year

Vendor

The layoffs will affect employees in sales, marketing and administrative capacities

clock 15 January 2024 • 2 min read
Splunk cuts seven per cent of staff, 'not a result' of Cisco deal, CEO says

Vendor

In a letter to employees, Splunk CEO Gary Steele blamed the new round of layoffs on market conditions that have ‘retracted'

clock 02 November 2023 • 2 min read

Sign up to our newsletter

The best news, stories, features and photos from the day in one perfectly formed email.

More on Vendor

Aric Ault, Infoblox

Aric Ault, Infoblox

CRN
clock 20 February 2024 • 4 min read
James Lewis, Infinidat

James Lewis, Infinidat

CRN
clock 20 February 2024 • 3 min read

Wendy Inwood, HYCU, Inc.

CRN
clock 20 February 2024 • 3 min read

Highlights

Staff & Salaries 2022

Staff & Salaries 2022

A snapshot of pay and headcount trends in the UK channel

Doug Woodburn
clock 09 March 2022 • 1 min read
Midwich CEO on Nimans acquisition, 2021 results and return to pre-pandemic levels

Midwich CEO on Nimans acquisition, 2021 results and return to pre-pandemic levels

Stephen Fenby talks to CRN after Midwich’s 2021 results in which profitability exceeded pre-pandemic levels

Josh Budd
clock 08 March 2022 • 3 min read
4 more vendors suspend sales in Russia following Ukraine invasion

4 more vendors suspend sales in Russia following Ukraine invasion

IBM and Microsoft are among a number of vendors which have also announced that they will halt sales in Russia following the invasion of Ukraine.

clock 08 March 2022 • 3 min read