Ransomware attacks are on the rise, giving cybersecurity companies ample opportunity for revenue growth, yet many organizations are laying off workers to cut costs, CNBC reported June 10.
Despite the potential for continued revenue growth, tech companies are being hit by market instability and the plunge of software stocks. One company, Cybereason, announced it is cutting 10 percent of its employees. Another artificial intelligence-based cybersecurity company, Deep Instinct, cut 10 percent of its workforce despite a 200 percent growth in annual revenue over last year. Another vendor, Lacework, cut 20 percent of its staff after raising $1.3 billion.
"We were working under the assumption that capital would be available, as much as we need and at the same price," said Cybereason CEO Lior Div. "We were not optimized as a business."