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(844) 627-8267 | Info@NationalCyberSecurity

Cybersecurity provider Secureworks to let go 15% of its workforce | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #ransomware

Secureworks Inc. is laying off 15% of its workforce in a bid to improve profitability and redirect more resources to its flagship cybersecurity product suite.

The company disclosed the move in a regulatory filing released today. The restructuring comes six months after a previous round of layoffs that hit 9% of Secureworks’ workforce at the time, or about 200 employees. The job cuts announced today are believed  to affect about 300 staffers.

Secureworks expects to complete the restructuring during its fiscal third quarter, which will end in late October. The company estimates it will incur a $14.2 million charge in connection with the move. According to Secureworks, that sum also includes expenses incurred in connection with certain “real estate‑related cost optimization actions.”

Nasdaq-listed Secureworks sells a suite of cybersecurity products called Taegis. The core pillar of the portfolio is Taegis XDR, a software platform that can look for hacker activity across a company’s cloud environment, employee devices and other technology assets. The platform also includes a tool that administrators can use to investigate potential breaches.

The second component of the product suite is a tool called Taegis VDR. According to Secureworks, it uses artificial intelligence to scan companies’ infrastructure for vulnerabilities. The tool prioritizes the security flaws it finds based on their severity, which enables administrators to address the most urgent issues first. 

The company also provides a third offering, Taegis ManagedXDR, that combines its software products with professional services. The offering enables enterprises to have Secureworks tackle breach attempts on their behalf. Additionally, it can manage related tasks such as testing an organization’s systems for potential security flaws. 

The workforce reduction that Secureworks announced today comes two months after it posted fiscal first-quarter results that fell short of analyst expectations. During the three months ended May 5, the company logged an unexpectedly large loss and a year-over-year revenue decline. But while Secureworks’ total sales dropped, revenue from Taegis surged 68% in the same time frame. 

In the regulatory filing that announced the layoffs, Secureworks said the restructuring is part of an effort aimed at “focusing on the higher-value, higher-margin Taegis solutions.” The company also said that it’s seeking to improve margins and optimize its “organizational structure to increase its scalability.”

Secureworks expects to end its current fiscal year with a loss of $31 million to $39 million on up to $400 million in sales. The Taegis product portfolio, in turn, is projected to achieve an annualized revenue run rate of at least $300 million. 

Image: Secureworks

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