Israeli cybersecurity company Cybereason is laying off 100 employees including several dozen in Israel. Cybereason has developed cybersecurity systems for protecting endpoints like computers and phones - a field in which it competes with Israeli company SentinelOne (NYSE: S) and Crowdstrike (Nasdaq: CRWD).
Before the current round of layoffs, Cybereason had 1,500 employees in Israel and worldwide. According to LinkedIn, the company's workforce has grown by 61% over the past year and by 122% in the past two years. Only last month, Cybereason announced that it was establishing a second development center in Israel in Beersheva to add to its existing center in Tel Aviv. But in recent weeks, the tech market climate has undergone a significant change with the company forced to improve efficiency and profitability and not only to grow as quickly as possible.
Cybereason has raised over $700 million to date including $275 million in its last financing round in July 2021 at a company valuation of more than $3 billion. In February, "Reuters" reported that Cybereason had filed confidentially with the US Securities and Exchange Commission (SEC) for a Wall Street IPO at a company valuation of $5 billion.
But with the market falling sharply since then, it now seems like the window for IPOs has completely closed, although it is unclear whether the company still believes it can raise money if it tried to streamline. It may be that Cybereason is attempting to reduce the amount of cash that it burns because it won't be able to go public in the near future.
Cybereason was founded in 2012 by CEO Lior Div, Yossi Naar and Yonatan Striem-Amit. The company has yet to respond to the report.
Published by Globes, Israel business news - en.globes.co.il - on June 1, 2022.
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