HashiCorp Lays Off 8 Percent In Response To ‘Current Customer And Economic Environment’
‘We are responding to the current customer and economic environment with proactive actions to lower our ongoing costs. This was a difficult decision that we don’t take lightly, and I am deeply disappointed to lose many valued colleagues. I believe, however, that after these actions we are better positioned for our opportunity,’ says HashiCorp CEO Dave McJannet in a prepared statement.
Multi-cloud infrastructure automation software developer HashiCorp Thursday said it is laying off 8 percent of its workforce as part of a set of cost-cutting measures the San Francisco-based company is taking to cut costs.
The move comes despite a solid first fiscal quarter 2024, which saw the San Francisco-based company record a 37-percent year-over-year rise in revenue and a solid fall in its net loss.
HashiCorp, which has open source projects at its core, on Thursday used its first fiscal quarter 2023 financial report to unveil the hiring of Susan St. Ledger as the company’s new president of worldwide field operations. St. Ledger, who starts her role next month, formerly served as president of worldwide field operations for both Okta and Splunk.
Prior to her joining HashiCorp as an executive, St. Ledger has served on the HashiCorp board of directors since late 2019.
The layoff of 8 percent of HashiCorp’s employees comes as the company is making targeted cuts in discretionary spending in response to a difficult macroeconomic environment and pressure from customers’ buying process, said CEO Dave McJannet in a prepared statement.
“We are responding to the current customer and economic environment with proactive actions to lower our ongoing costs,” McJannet said. “This was a difficult decision that we don’t take lightly, and I am deeply disappointed to lose many valued colleagues. I believe, however, that after these actions we are better positioned for our opportunity.”
Prior to the layoffs, HashiCorp had over 2,000 employees.
For its fiscal first quarter 2024, HashiCorp reported total revenue of $138 million, up about 37 percent over the $100.9 million the company reported for its first fiscal quarter 2023.
That included license revenue of $15.2 million, up from $10.3 million; support revenue of $101.9 million, up from $79.2 million; cloud-hosted revenue of $16.5 million, up from $8.8 million; and professional services and other revenue of $4.4 million, up from $2.5 million.
For the quarter, HashiCorp reported a GAAP net loss of $53.3 million or 28 cents per share, down from last year’s GAAP net loss of $78.2 million or 43 cents per share. On a non-GAAP basis, HashiCorp reported a net loss of $12.7 million or 7 cents per share, down from last year’s $31.8 million or 17 cents per share.