US cybersecurity company Rapid7 (Nasdaq: RPD) has announced it is laying off 20% of its 2,700 employees, including at its Israel offices, where according to IVC it has 165 employees. Rapid7's Israeli office is based on the 2021 acquisition of Alcide, which developed a cloud security platform based on Kubernetes.
The Israel office was expanded in March when Rapid7 acquired Israeli company Minerva for $38 million. Minerva creates cybersecurity solutions for end points.
In an open letter published by Rapid7 CEO Corey Thomas, he explained the reasons that led to the decision to restructure the company including the desire to minimize the damage created due to the company's inability to adapt quickly to the crisis in the industry. He said that restructuring the company, which includes reducing the workforce, would help the company's growth and success in the long term. "In addition to enabling a higher quality customer experience, we expect the net results of these optimizations will support growth in the business while allowing us to double free cash flow in 2024," he wrote.
A source close to the matter told "Globes," "The layoffs in Israel are taking place as part of a worldwide wave but there was an attempt to avoid this although it is happening relatively late. The share has been in decline for a long time."
Another source told "Globes," "This decision was a result of the economic.
Rapid7's current share price is $39.79, giving a market cap of $2.4 billion.
Published by Globes, Israel business news - en.globes.co.il - on August 9, 2023.
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