The company did not say how many people were laid off in total. Lacework had previously stated that as of March, it employed over 1,000 people.
The Software Firm Has Laid Off Employees
Lacework is the latest software company to announce a large round of layoffs amid concerns about a broader economic slowdown.
According to Protocol, the company confirmed that it laid off 20% of its workforce as part of a "decision to restructure our business."
In a blog post published on May 25, the cloud security vendor said that it has "taken every effort to provide those impacted with severance encompassing compensation, healthcare coverage, and access to outplacement support."
Lacework went on to say that employees seeking opportunities outside of the company will be assisted by them in any possible way it can.
Lacework Has One of the Biggest Valuations for Privately Held Security Companies
The company announced a $525 million funding in January 2021, followed by a $1.3 billion funding in November 2021, with a $8.3 billion valuation. Lacework ranks third among privately held security firms in terms of valuation, according to CB Insights.
According to Protocol, the cloud security company went on a recruiting binge after its customer base increased by 3.5x in 2021.
Lacework's employees jumped from 200 people in January 2021 to over 1,000 by March, thanks to the significant funding and rapid expansion of the firm.
So now we only have one big question. What is the reason for the latest lay off?
According to the company's post, "Over the past several weeks and months, a seismic shift has occurred in both the public and private markets. While we do not have control of the environment around us, we do have a responsibility to control how we operate our business and make changes as needed to best position the company for continued and long-term success."
Another Tech Company Just Recently Laid Off 700 Employees
As previously reported, Klarna, a Swedish tech company that specializes in "buy now, pay later" (BNPL), announced on Monday that 10% of its workforce would be laid off.
Interest in pay-later items has declined as customers' finances have tightened, and advocates in the U.S. began studying the deferred payment schemes in 2021.
Citing the Tech Crunch report, the company employs around 7,000 people currently.
As a result of the 10% labor cut, some 700 people would lose their jobs at the fintech firm. In the next few days, certain European employees will be asked to leave the company in exchange for severance pay.
Outside of Europe, some employees will be forced to quit the company, but the process will vary depending on where they work.
The tech company did not go into detail about the layoffs. Instead, CEO Sebastian Siemiatkowski of Klarna points to a multitude of economic and geopolitical factors that have influenced the firm's difficult decision.
Klarna presently has 400,000 merchants in its network.
