Cybersecurity, hardware cos join layoff race
Many domestic cybersecurity firms recently reduced their workforce as hyper-demand arising from the pandemic begins to wane
Bengaluru: Technology layoffs continue without any respite in sight as cybersecurity firms and hardware devices companies optimise workforce, joining global technology giants like Google and Amazon among others.
Sources in the know said many cybersecurity firms have recently reduced their workforce as hyper-demand arising from the pandemic begins to wane. They said many Indian engineers have lost their jobs as most global cybersecurity firms have their technology staffers operating out of India.
“Many cyber security firms have optimised staff count in recent months. As India is an important technology R&D centre for most global cybersecurity firms, many engineers have lost their jobs. We expect things to stabilize in the second half of the current year,” said a top industry official working in cybersecurity space, who wished not to be named.
According to the official, the pandemic-led demand is waning, forcing cybersecurity firms to reduce headcount.
In January this year, cybersecurity company Sophos said that it would lay off about 450 people globally including in India, which is 10 per cent of its total workforce, to achieve the optimal balance of growth and profitability. Similarly, networking & cyber security giant, Cisco is reportedly laying off 4,000 staffers or five per cent of its total workforce. The company has said that it intends to right size certain businesses.
According to layoff tracker firm, Layoffs.fyi, dozens of cybersecurity firms across US and Europe had terminated staff over the past year including Tripwire, Deep Instinct, Pipl, Transmit Security, Tufin, Checkmarx, Varonis, Perimeter 81, and Armis among others. Many cybersecurity startups were also included in the list.
“Private equity investors are heavily invested in cybersecurity firms in recent years. These firms have low tolerance towards slow growth. So, as growth moderates, employee optimisation becomes the outcome,” said another source.
Not only software product and service companies are cutting down staffers, even hardware devices firms have also joined the race. Computer hardware giant, Dell recently said it would let go about five per cent of its workforce or more than 6,000 of its employees. The company said “the challenging global economic environment is the reason for the job cuts.”
As global shipments of personal computers, and laptops fell, many hardware devices firms have to optimise workforce that is aligned with the emerging demand environment.
During the pandemic, demand for PCs and laptops rose sharply owing to remote working. However, as the world comes back to normal ways of working, demand has moderated a lot in recent months.
