• Snyk, a cloud-native security startup, has laid off 30 employees (less than 5% of its workforce) globally over the last quarter, amidst deteriorating economic conditions resulting from Wall Street’s pullback and freeze on public offerings. The company has offices in Boston, London, Tel Aviv, and Ottawa and has an employee headcount of 1,300.

• Snyk laid off its workers in a bid to streamline its operations, preserve cash, and balance profitability to ensure long-term growth. The company stated that the organizational restructure accelerated its plans to become free cash flow-positive in 2024.

<ul><li>Snyk reported that it expanded its developer security platform to five products, increased its customer base by more than 100%, tripled its employee headcount, and acquired six companies such as CloudSkiff and Fugue to boost its cybersecurity capabilities over the past 18 months. The company also raised USD 530 million in Series F funding at a valuation of USD 8.5 billion in September 2021.</ul>

<ul><li>The layoffs come on the heels of the company’s plans to go public in late 2022 or early 2023. In March 2022, the company hired Morgan Stanley and Goldman Sachs in preparation of its IPO and also aimed to double its current valuation.</ul>

<ul><li> Analyst QuickTake: Snyk’s decision to trim its workforce follows similar moves by several other cybersecurity peers. Recently, the threat detection and response company, IronNet laid off nearly 17% of its workforce last month, and in a similar situation, the cloud-security firm Lacework —which also shelved plans to go public this year—laid off 20% of its workforce, citing seismic shifts in both the public and private markets. Endpoint security startups such as Deep Instinct and Cybereason have also cut down their workforce due to similar reasons.</ul>