Kaseya: Layoffs and Reorg Now, Growth Soon?

Kaseya has cut 50 or more employees and appears to be consolidating some offices, multiple industry sources told MSPmentor. Time for MSPs (managed services providers) to be concerned about the IT automation software company? Let’s slow down folks and put the news in proper context: Layoffs often follow M&A deals. Kaseya remains well-funded. My key concern is the company’s silence about the changes, which appear to be significant.

Under previous management, Kaseya was a far-flung company with offices scattered about the globe. More recently, Insight Venture Partners acquired Kaseya, Zyrion and Rover Apps to form a single, end-to-end IT automation company. My view: Anytime you see a roll-up like that, there will always be some headcount cuts.

Those cuts apparently came this week. Several sources close to Kaseya say 50 or more employees were let go. MSPmentor has reached out to Kaseya for comment but received no reply.

This is not the time to go radio silent. Instead, the company should over-communicate its strategy — especially as MSPs weigh long-term business commitments and software alliances.

The Bigger Picture

New CEO Yogesh Gupta, who succeeded Gerald Blackie a few months ago, has previously stated that the company remains committed to MSPs and mid-market IT departments. And sources who worked for Kaseya in recent years say the company should not be under-estimated — especially as the Kaseya, Zyrion and Rover Apps business components converge.

“There are some big plans on the table, the proper managers are in place, and the proper funding is available,” said one former Kaseya employee who remains in close contact with the company. Multiple clues suggest Kaseya’s Unified Management Platform is about to get a boost.

Proper Balancing Act

Overall, I believe Kaseya potentially can be a stronger company today than a year ago, thanks to Insight Venture Partners’ funding and a range of new hires. But as Kaseya charts a course for future growth (maybe even to the $1 billion mark) it better keep a close eye on its MSP base.

My inbox suggests plenty of MSPs are concerned about the layoffs — and Kaseya’s silence about them. As we head into the weekend, RMM software suppliers aware of the layoffs are calling on Kaseya’s MSP base.

Is Kaseya doing the same?