Despite continuing sales growth, cyber security services player Rapid7 is slashing its workforce by almost a fifth.
It has announced through a Securities and Exchange Commission filing in the US that 18% of its staff will be laid off across its international operations.
The Boston-headquartered firm posted its second quarter results this week, and reported that annualised recurring revenue jumped 14% year-over-year to $751m. Total revenue was also up 14% to $190m, as were products sales at $182m.
However, there was a GAAP operating loss of $52m. “Revenue and Non-GAAP operating income exceeded our guidance ranges and we saw better than expected traction with our consolidation offerings as customers gravitate towards our integrated security operations platform,” said Corey Thomas, chairman and CEO of Rapid7.
But, he added: “In order to build upon the momentum we’re seeing in security operations, we announced a restructuring plan to position us to accelerate investments in becoming the leading provider of integrated security solutions for the modern SOC.”
That is expected to lead to more sales being made through MSPs, said the company.
