ConnectWise Layoffs Designed to ‘Support Partners’ Success’

ConnectWise has confirmed a small number of layoffs in a move to “improve operations.”

The IT management software provider didn't say how many employees are impacted. Chatter on Reddit put the number of ConnectWise layoffs at fewer than 100 of its more than 3,000 workers.

Before the job cuts, the company had at least one executive change this year. Clint Maddox left his post as chief revenue officer in January, taking a similar role at KX. Brad Surminsky is no longer listed on the ConnectWise website as CFO, although his LinkedIn profile still lists him as holding that job.

Tampa, Florida-based ConnectWise sells mainly to SMBs through ITservice providers, which could position it for 2024 success.

Canalys principal analyst Robin Ody predicts cybersecurity management – one area where ConnectWise plays – is among the drivers behind Canalys’ forecast channel growth of at least 12% in 2024. Canalys research shows two-thirds of channel partners expect cybersecurity revenues to grow 10% or more year-over-year, and one-third of partners expect more than 20% cybersecurity growth.

In another good sign for the company, Omdia’s Quarterly Market Outlook Survey Insights from the fourth quarter of 2023 found 53% of MSPs increased their year-over-year security solution revenue from the same quarter a year prior.

Related:Recent Tech Layoffs: 2024 Q1 Tracker

Canalys' Robin Ody

Ody’s MSP predictions also include an uptick in M&A deals following a decline in in 2023. That could impact ConnectWise.

“ConnectWise has long been up for sale but has been unable to find a buyer at its current price,” Ody noted.

News of the ConnectWise layoffs came the same week the company launched an integration partnership with Malwarebytes. The partnership will give MSPs and cloud resellers access to Malwarebytes ThreatDown EDR, ThreatDown MDR and other ThreatDown solutions, powered by the ConnectWise Asio platform.

ConnectWise Layoffs: Plenty of Company

There has been a spate IT layoffs in early 2024, including large companies Dell, Cisco, and AWS. Those in April range from AWS’ disclosure of a significant number of reductions to Kaseya’s cutting of more than 100 jobs, which it called “performance-based terminations” rather than layoffs. Earlier in 2024, Dell said it had cut 6,000 jobs in the past year and Cisco said it would terminate 4,000 jobs. Broadcom has also been reducing VMware jobs following its $69 billion acquisition of the virtualization giant.

Others with layoffs in 2024 include 8x8, Cloud Software Group, Genesys, Ingram Micro, Orca Security, Okta Proofpoint, Salesforce, SAP, Veeam, Xerox and Zoom.