Israeli Cyber ​​company Varonis lays off 5% of its workforce: about 110 employees

Cyber ​​company Varonis lays off 5% of its workforce. It is about 110 employees, with less than half being fired from the company's Israeli development center. Varonis' workforce swelled during the tidal period and the company currently employs 2,270 people while its annual revenue rate stands at approximately $470 million.

Moreover, the company stated that during the third quarter it further expanded by 89 employees, a number similar to the number of employees who will now go home. In the last two years, it has recruited 550 employees. Varonis, which generates cash from operations, also has high cash reserves of nearly $800 million as of the end of the quarter. Varonis announced the layoffs in a conference call with investors following disappointing financial reports for the third quarter, after which its stock plunged 35% to a value of $1.8 billion.
The layoffs at Voronis follow cuts at the Israeli cyber companies Sneek and Cyberzen, however, it is the first public cyber company to lay off, while Check Point, Cyberark and Palo Alto are still hiring. Check Point and CyberArk have already published good financial reports for the third quarter and Palo Alto is supposed to publish the results in the second half of November.
Varonis announced the layoffs at the same time as publishing its financial statements for the third quarter of 2022 that missed forecasts. The company, which sells cyber security software to the corporate market, stated that its performance was adversely affected by currency fluctuations as well as by a significantly worse-than-expected economic situation that had a negative impact mainly on its governmental activity sector. As a result of all this, together with the effects of the war in Ukraine, as a result of which Veronis stopped sales activities in Russia, it reduced the annual forecast.
According to the updated forecast, it should show a growth of 10%-12% in the last quarter of 2022, compared to expectations for a growth rate of more than 20%. In the last quarter, it recorded revenues of 123 million dollars, a growth of 23% compared to the corresponding quarter. Varonis is still losing operationally and also on the bottom line.