News: Snyk lays off 128 employees despite recent $200 million funding round

Strategic HR

Snyk lays off 128 employees despite recent $200 million funding round

Since last July, Snyk, which was founded in Israel, has laid off more than 350 employees, which is a quarter of its workforce. The recent investment has brought the company's total funding to about $1.2 billion, including secondary deals.
Snyk lays off 128 employees despite recent $200 million funding round

On Thursday, Snyk, a cybersecurity startup, announced that it would be letting go of 128 additional employees. Snyk had previously laid off 198 employees, reducing its workforce by 14%, in October of last year. Despite raising $196.5 million in a Series G funding round just a few months ago, Snyk has made the decision to cut jobs once again.

Last July, Snyk underwent an "organisational change" and terminated 30 of its employees. With the additional 128 employees laid off recently, the company has now parted ways with a total of about 355 workers in less than a year, representing a quarter of its entire staff.

“As we’ve discussed over the past several quarters, we anticipated a tough start to 2023, but we were prepared to accelerate growth in the back half of the year. We now know that the challenging market conditions are likely to persist into early 2024, so we must once again adapt,” wrote Snyk CEO Peter McKay in a message sent to all company employees on Thursday. 

He further added that “while this is undeniably difficult, we’ve chosen to take advantage of this moment to evolve our structure and focus as well as address feedback from our customers and all of you. With these changes, 128 Snykers are leaving us today, primarily from GTM and our Corporate Functions.”

Snyk's Series G funding round was conducted last year at a valuation of $7.4 billion, representing a 12% decline from the $8.5 billion valuation it received in September 2021 when it raised $300 million. The most recent investment brings Snyk's total funding to approximately $1.2 billion, which includes secondary deals.

Founded by Assaf Hefetz, Danny Grander, and Guy Podjarny in 2015, Snyk offers a security product primarily designed for developers. Its solution helps identify and address vulnerabilities and license violations in open-source dependencies and container images.

In September 2021, Snyk raised $530 million at a valuation of $8.5 billion, just six months after securing $300 million at a $4.7 billion valuation. Before the layoffs, the company had approximately 1,300 employees, with the majority of them based in the U.S. and fewer than 100 working from its Israel office.

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Topics: Strategic HR, #HRCommunity, #Layoffs, #HRTech

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