IronNet in a regulatory filing said that the company is the process of laying off about 55 of its employees. Importantly, this constitutes to about 17% of IronNet’s total workforce. Moreover, the company is expecting to complete the layoff process by the end of this month.

IronNet is a cybersecurity technology developer which started back in 2014. It is the latest in a string of security technology developers which have started major layoffs. Moreover, they are signaling that valuations in the cybersecurity space may have peaked. However, the company has not disclosed the exact reason of layoffs in its filing with the U.S. Securities and Exchange Commission. “The workforce reduction is part of a broader plan by the Company to streamline its operations for higher efficiency, to reduce overall expenses and preserve cash, and to set the Company up for rationalized growth going forward.” The company wrote in their statement.

Company reported losses during last two quarters

The company reported a net loss of $33.2 million during the previous quarter of the fiscal year. Moreover, they reported a loss of $15.5 million net loss in the same quarter last year. Annual recurring revenue (ARR) was $30.1 million in comparison to $25.6 million for the year-ago quarter. Although, in its SEC filing the company claimed that IronNet sees no change to its outlook or customer pipeline. In addition, they are looking to increase efficiency and set the company up for rationalized growth going forward.

“Our strategy remains the same, to transform cybersecurity through Collective Defense. In fact, we’ve seen momentum around the concept of Collective Defense in the past several quarters, with President Biden and his cyber experts even referring to it as the path forward.” Company’s spokesperson wrote in a statement.

Layoffs among cybersecurity startups

News of layoffs at IronNet and many of its peers comes at a time when labor markets are tight. Tech companies are finding it difficult to hire the required talent. However, the layoffs in security startup space have increased despite the tight labor market. Last June, Atlanta based OneTurst laid off 950 employees. Similarly, Boston based Cybereason laid off 10 percent of their workforce as few months ago.

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