Global cybersecurity company NCC has announced a second round of staff cuts, after having made seven per cent of its workforce redundant in February. The company joins an increasing number of organisations in the security industry who are downsizing this year, including Rapid7, Lacework and Deep Instinct.
The company has not yet disclosed the exact number of employees who will be made redundant in this latest round of cuts. As of the end of 2022, NCC Group had an annual turnover of £314m and employed 3,700 staff worldwide.
“As set out earlier this year, we have a renewed global strategy in response to changing market dynamics and client demands,” an NCC spokesperson told Tech Monitor in a statement. “These macro forces are affecting the industry as a whole, which is why we must establish strong foundations for the future. Regrettably, this means that a relatively small number of our talented colleagues are in consultation and some based in North America have already left NCC Group.”
Despite this, the market’s reaction to the firm’s previous layoffs have not been kind. In February, when 125 employees based in the US and in North America were made redundant, NCC Group’s share price dropped by 18%. Two months later, when the company stated in a trading update to the London Stock Exchange that “market volatility has materially increased and is having a significant impact on our near-term cybersecurity revenue and profitability,” its share price sank again by 35%.
NCC Group not alone in redundancies
NCC Group’s announcement comes as the cybersecurity industry contends with the economic slowdown currently gripping Europe and North America. While some have argued that the sector is effectively ‘recession-proof,’ it has not been immune to rising inflation and the inclination among some company boards to cut costs where they can.
This has been evidenced elsewhere in other layoff announcements across the sector. Last week, security company Rapid7 announced in an SEC filing that it will be cutting approximately 18% of its workforce as part of its own restructuring initiative. According to the filing, this plan is designed to improve ‘operational efficiencies, reduce operating costs, and better align the company’s workforce with current business needs, top strategic priorities, and key growth opportunities.’
Similarly, cloud security software vendor Lacework also recently announced an adjustment to its oncoming fiscal plans by cutting 20% of its workforce. The company explained in a statement that the move was in response to a ‘seismic shift’ in the markets, forcing it to make modifications.
‘While we do not have control of the environment around us, we do have a responsibility to control how we operate our business and make changes as needed to best position the company for continued and long-term success,’ Lacework said in a blog post, and according to the Nasdaq, deep learning start-up Deep Instinct cut 10% of its workforce in June.