Struggling Boston cybersecurity company Rapid7 said on Monday it cut 12 percent of its workforce, or about 300 jobs, in the second quarter.
The cuts, announced alongside the company’s second-quarter earnings report, came as the company’s revenue and profits have been shrinking, and less than a month after the company told the Globe it was laying off only 21 people. The company did not immediately respond to a request for comment Monday.
Shares of Rapid7, which were down 35 percent over the past year before Monday’s news, jumped 6 percent in aftermarket trading.
Larger rivals, meanwhile, have been thriving, with fears of AI-powered cybercrooks driving up sales. Shares of CrowdStrike have gained 112 percent over the past year, and Palo Alto Networks’ stock price is up 130 percent.
Rapid7 brought in revenue of $860 million last year, but on Monday the company forecast 2026 sales would shrink to as little as $837 million, as some customers held off on switching to Rapid7’s newer cybersecurity offerings. Chief executive Wael Mohamed, who replaced longtime leader Corey Thomas in June, has been overhauling Rapid7’s executive ranks and trying to add more AI to its software.
“Rapid7 is a good company ready to be great, but getting there requires clear choices, strong execution, and the discipline to focus on what matters most,” Mohamed said in a statement on Monday.
The job cuts will cost $11 million to $12 million, largely to cover severance, Rapid7 said.
The growth of cyber apps powered by artificial intelligence is roiling the software security industry. Older firms like Rapid7 and Snyk have been trying to adapt their apps, while new local firms starting out using using AI, such as 7AI and Realm.Security, have raised hundreds of millions of dollars to fund hiring sprees.
Even before the emergence of AI, Rapid7 was under pressure to broaden its offerings as larger rivals started to compete in its niche of helping customers identify cyber vulnerabilities. The company cut almost 500 jobs in 2023 after its growth rate and stock price plunged.
Aaron Pressman can be reached at aaron.pressman@globe.com. Follow him @ampressman.
