Qumulo Confirms Layoffs, Citing Economic Conditions, Reaching Profitability

Qumulo, the data storage provider, is the latest company doing business in the channel to confirm layoffs. The company is cutting 19% of its 400-plus workforce.

IronNet, OneTrust, Cybereason and Lacework also recently confirmed layoffs.

Qumulo’s Bill Richter

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 tells Channel futures it made a number of organizational changes to greater emphasize profitability and long-term sustainability. The layoffs impact 80 Qumulo workers.

“Qumulo has a strong balance sheet, with no debt outstanding,” it said. “Our commitment to our mission, innovation and customer success, remains unchanged.”

Qumulo‘s customers include Fortune 500 companies, major film and animation studios, and some of the largest research institutions in the world.

Qumulo has raised $351 million in funding at a valuation of more than $1.2 billion. The financing, led by funds managed by BlackRock, includes strong participation from Highland Capital Partners, Madrona Venture Group, Kleiner Perkins, and new investors including Amity Ventures. Qumulo is using the money to accelerate innovation and scale across the globe.

In May, Qumulo announced two executive hires to bolster customer momentum and product innovation within the expansive unstructured data market. It appointed Eric Brodersen as chief customer officer and Kiran Bhageshpur as CTO.

Also in May, Qumulo introduced a new petabyte-scale archive optimized offering that enhances its Cloud Q as a service on Azure. The new offering utilizes Qumulo’s serverless storage technology on Azure.