Cybersecurity Firm Cyren Cuts Nearly All Staff, Exploring Liquidation
The email security vendor says that it’s laying off 121 employees and will ‘assess all of its strategic options, including potential asset monetization or liquidation.’
Cyren is cutting “substantially all” of its staff with layoffs of 121 employees as the cybersecurity vendor says it is exploring an asset sale or liquidation, the company said Wednesday.
The publicly traded company said in a news release that “existing cash and projected cash flows from operations will not be sufficient to meet the company‘s working capital needs in the near term.” The company’s stock price fell 44 percent, to 42 cents a share.
The email security and threat detection vendor blamed “current market conditions and associated challenges with raising additional capital” for the company’s situation.
“In the absence of additional sources of liquidity, management anticipates that the company‘s existing cash and projected cash flows from operations will not be sufficient to meet the company’s working capital needs in the near term,” Cyren said in the news release. “The company continues to assess all of its strategic options, including potential asset monetization or liquidation.”
Cyren did not say what its total headcount has been, but disclosed that its leadership has “approved a plan to reduce its workforce by approximately 121 employees, representing substantially all of the company‘s workforce.”
Cyren’s CEO is Brett Jackson, a cybersecurity industry veteran who joined the company as chief executive in 2019. Its revenue rose 4 percent year-over-year, to $5.8 million, during the third quarter, ended Sept. 30, 2022. The McLean, Va.-based company had sold off its secure email gateway business in August 2022.
In the news release, Cyren said that “in the event that the company determines that its liquidity will not allow it to meet its obligations as they become due or that additional sources of liquidity will not be available, the company may need to pursue options available under applicable insolvency laws, including winding up its operations.”