5 Cybersecurity Startups That Recently Laid Off Workers
Later-stage security firms are pulling back on spending due to deteriorating market conditions. CRN compiles a sampling of recently announced layoffs.
Deep Instinct’s move to cut its workforce by a reported 10 percent was the third major cybersecurity industry layoff in just two weeks.
Crunchbase first reported the Deep Instinct layoffs in early June, with CNBC later confirming the action. Officials at Deep Instinct, founded in 2015 and based in New York, could not be reached for comment by CRN.
Lane Bess, chairman of Deep Instinct, recently told CNBC that the company had to get more efficient with its sales operation.
“We took a look and said, ‘Where are we being most effective in the enterprise?‘” Bess said.. “Are we doing well in the low end of the market, where we have inside salespeople? No. Do we have channel partners that can get to that low end of the market? Yes.’”
Over the years, Deep Instinct, which uses artificial intelligence to detect and prevent malware, has raised more than $259 million in funding from investors including BlackRock and Millennium.