Sophos Cites Downturn, MDR Shift In Disclosing Major Layoffs

Cybersecurity giant Sophos disclosed Wednesday that it’s reducing its global workforce by up to 10 percent, citing both the current economic environment as well as plans to invest more heavily into an “as-a-service” model.

The company confirmed the layoff plans to CRN, following a report from TechCrunch, which said the move would affect about 450 employees. Sophos, however, did not confirm that figure.

While dozens of cybersecurity vendors have disclosed staff cutbacks since last May amid economic upheaval, the Sophos layoff is apparently one of the largest. Last June’s layoff of 950 employees by OneTrust appears to have been the only larger staff cutback in the security industry since the troubles began. 

In its statement, Sophos blamed the cutbacks on factors including the “challenging and uncertain macro environment,” which has forced the company to reassess its growth prospects.

Many cybersecurity vendors had become accustomed to rapid growth in recent years, partially in response to a string of high-profile cyberattacks including the ransomware attack on Colonial Pipeline and the software supply chain compromise of SolarWinds. As a result, many vendors had adopted a strategy of “burning money to capture growing market share” while the good times lasted, said Stel Valavanis, founder and CEO of Chicago-based managed security provider onShore Security.

Leave a Reply

Your email address will not be published.