2022 Telecom-IT Layoff Tracker: Oracle, Microsoft, Qumulo, IronNet, More
Some of the layoffs are occurring despite profitable quarters and strong outlooks.
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Oracle kicked off August by cutting jobs in marketing and its U.S. customer experience (CX) division.
That’s according to Bloomberg. Some workers were told their positions had been eliminated. Junior sales employees as well as a division sales director were among those let go, according to one former worker.
Chad Cain, former senior manager of sales engineering, posted the following LinkedIn message:
“Hi everyone – today is a sad day at Oracle. They have decided to reorganize the CX organization and move on from several solutions. There will be many people impacted by this realignment and quality folks will be lost. As such, I have been impacted by this realignment and am looking for a new role and would appreciate your support. Thank you in advance for any connections, advice, or opportunities you can offer.”
Oracle couldn’t be reached for comment.
Microsoft reportedly followed the closing of its fiscal year on June 30 with job cuts impacting less than 1% of its 180,000-person workforce. It then eliminated numerous job openings in its Azure cloud business and its security software unit.
However, Microsoft still plans to add workers in the year ahead.
The cuts impact a variety of groups including consulting, and customer and partner solutions, and were dispersed across geographies.
Microsoft blamed macroeconomic trends for lower-than-expected fourth-quarter earnings. Despite setting a record for total revenue, it missed analyst estimates.
Qumulo, the data storage provider, earlier this summer cut 19% of its 400-plus workforce.
According to GeekWire, in a memo sent to employees, Qumulo CEO Bill Richter cited economic conditions and getting the company to profitability as reasons for the cuts. He also told GeekWire that “the two most important things are growth and profitability — not one or the other.”
Qumulo told Channel futures it made a number of organizational changes to greater emphasize profitability and long-term sustainability. The layoffs impacted 80 Qumulo workers.
In June, cybersecurity company IronNet cut 55 workers, or 17% of its workforce.
IronNet announced the layoffs in a Securities and Exchange Commission (SEC) filing.
Joseph Depa III is IronNet‘s public relations/social media manager.
“The workforce reduction is part of a broader plan to streamline our operations for higher efficiency, to reduce overall expenses and preserve cash, and to set IronNet up for rationalized growth going forward,” he said. “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.”
Liongard in June announced a series of employee layoffs, causing more than a few arched eyebrows in the industry.
The “organizational changes” were declared via a LinkedIn post from Liongard CEO Joe Alapat:
“As we have all seen in the press and social media, the market for technology companies has been difficult to navigate in recent months. We listened and learned from the market and investors, and are evolving our plan. While Liongard’s market, product and growth remain strong, we are prioritizing a path to profitability. To implement this new plan, we must make organizational changes that require us to part ways with a portion of our teammates who have been with us on our journey. This has been the most difficult decision I’ve had to make at Liongard, and I know it will be challenging for our teammates.”
In June, OneTrust confirmed layoffs impacting 950 employees, or about 25% of its workforce as part of a reorganization, despite record quarters and increasing customer demand.
That’s according to Kabir Barday, OneTrust’s CEO.
“It is one of the most difficult decisions I’ve had to make as a leader,” Barday said in a blog. “My responsibility is to ensure OneTrust thrives and is positioned for sustained growth, and unfortunately, reducing our headcount and adapting to the capital markets sentiment is what is needed to keep us in our leadership position.”
In an email sent to employees, Barday acknowledged news of the layoffs is surprising. That’s because employees last month heard the business is “on track with record quarters and increasing customer demand.”
“However, capital markets sentiment shifted to a more balanced approach between growth and profitability,” he said. “And at this time, we have decided the best course of action is to reorganize to position OneTrust for continued long-term success. It is my role as CEO to ensure that OneTrust continues to thrive.”
Cybereason in June announced layoffs impacting 10% of its workforce in Israel, the United States and Europe, citing a closed tech initial public offering (IPO) market.
According to CTech, Cybereason laid off about 100 workers, with the company laying off dozens at its Israel headquarters, and the rest working at its offices in the United States and Europe.
Cybereason operates in 50 countries and its workforce totaled 1,500, CTech said.
Cybereason sent us the following statement regarding its layoffs:
“On June 1, we internally announced a reduction in workforce (by approximately 10%). This was an extremely difficult decision. As the bullish tech market conditions have turned and the tech IPO market has essentially closed, companies like us must now exercise more strict financial discipline and prioritize profitability over top-line growth.”
Cybereason said its market traction remains strong. It has “long-term objectives in mind and plans for a tremendous outcome when the markets – and we – are ready.”
In May, Lacework, the cloud security company, confirmed layoffs that slashed 20% of its workforce. The layoffs are part of a restructuring.
In March, Lacework said it had more than 1,000 employees, 85% of which were hired after the start of the COVID-19 pandemic.
The company said a claim on Twitter that the layoffs impacted 300 workers is a “significant overestimate.”
Last November, Lacework raised $1.3 billion in growth funding at a valuation of $8.3 billion. The vendor said that’s the largest funding round in security industry history.
Lacework addressed the layoffs and restructuring in an editorial on its website.
“Over the past several weeks and months, a seismic shift has occurred in both the public and private markets,” the company said. “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.”
Olive, a health care automation startup, last month announced it was cutting 450 jobs.
According to The Columbus Dispatch, the company said the cuts are “based on the realities of today’s economy.”
Employees were told their work will stop immediately. They will be paid and will receive benefits for 60 days, and will be eligible for two weeks of severance pay for each year of service, according to a company notice.
Sean Lane is Olive’s CEO.
“This is the most difficult decision I’ve had to make as CEO,” he told the Dispatch. “But I make it knowing this is the right strategy for us to deliver on Olive’s mission. I’m inspired by what we have done and will continue to do to ensure Olive’s transformative impact for many years to come.”
And at the start of 2022, CoreDial said it would shed more than one-third of its workforce. That followed its acquisition by BCM One.
In December, CoreDial, now owned by BCM One, filed a Worker Adjustment and Retraining Notification (WARN) letter with the state of Pennsylvania, where it is based. In the notice, CoreDial said permanent layoffs would impact 62 people on Jan. 28. The Philadelphia Inquirer said last June that CoreDial had 165 employees. Based on that number, the cuts represented nearly a 38% reduction in staff.
And at the start of 2022, CoreDial said it would shed more than one-third of its workforce. That followed its acquisition by BCM One.
In December, CoreDial, now owned by BCM One, filed a Worker Adjustment and Retraining Notification (WARN) letter with the state of Pennsylvania, where it is based. In the notice, CoreDial said permanent layoffs would impact 62 people on Jan. 28. The Philadelphia Inquirer said last June that CoreDial had 165 employees. Based on that number, the cuts represented nearly a 38% reduction in staff.
Oracle, Microsoft and Qumulo are among businesses in the channel that have shed workers since the start of 2022. Most are part of a cost-cutting strategies and/or business transformation. Our latest layoff tracker has all the details.
Geopolitical uncertainty and economic indicators pointing to an impending recession have prompted a number of tech employers to cut back on their existing workforces and freeze hiring. Furthermore, some of the layoffs are occurring despite profitable quarters and strong outlooks.
Displaced workers could find new opportunities. Last month, CompTIA said hiring activity for technology workers remains on an upward trajectory, countering reports of layoffs and reaffirming tech’s essential role in powering the nation’s economy. Technology industry companies added 20,300 net new workers in June, the 19th consecutive month of employment growth.
Still, an increasing number of channel businesses are handing out pink slips as signs of an economic slowdown mount. As of late July, more than 32,000 workers in the U.S. tech sector have been laid off this year. That’s according to a Crunchbase News tally.
Scroll through our layoff tracker below for a recap of cuts that have occurred this year.
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