Malwarebytes Layoffs Impact Workers as Part of Strategy Shift

Malwarebytes has initiated layoffs that affected 125 employees globally as part of a shift in its go-to-market (GTM) strategy.

In a Worker Adjustment and Retraining Notification (WARN) notice with the California Employment Development Department, Malwarebytes said the employees impacted by the layoffs worked at or reported to its office in Santa Clara, California.

Malwarebytes expects the layoffs to be permanent. Customer success managers, accounting, sales and marketing roles are among those impacted.

Malwarebytes is the latest cybersecurity provider to announce layoffs. Others include Microsoft, OneTrust, Cybereason and Lacework

Marcin Kleczynski is Malwarebytes’ CEO.

Malwarebytes Marcin Kleczynski

“Unlike most tech companies, Malwarebytes generates positive cash flow to grow our business,” he said. “So this was more a strategic reorganization than a reaction to market conditions.”

In recent months, Malwarebytes has increasingly refocused its business on SMB and midmarket customers, Kleczynski said. That’s in alignment with its mission to “protect the underserved.”

“We are shifting our GTM strategy to prioritize growing in these markets,” he said. “[That includes] expanding our channel partnerships and accelerating our momentum with MSPs. Unfortunately, this has meant revisiting our current enterprise sales function and recalibrating the direct sales organization.”

More Emphasis on Partners

The reorganization allows Malwarebytes to focus resources on re-emphasizing its efforts on the channel with a broader portfolio of offerings, Kleczynski said. It’s adding new partners, expanding its existing MSP business and working to provide them additional resources for success.

“While a difficult transition, these changes reflect a careful realignment of our business moving forward to be a partner-centric organization in service of our customers and the organization’s long-term growth,” he said.

In March, Brian Thomas, Malwarebytes’ vice president of worldwide MSP and channel programs, said a major initiative for this year is massive growth of its partner network. The company is aiming for $25 million globally in monthly recurring revenue (MRR).