Security News > 2023 > August > Rapid7 prepares to toss 18% of workforce to cut costs

Rapid7 is initiating a restructuring process that will involve shedding 18 percent of its workforce after net losses widened over the most recent quarter.

The NASDAQ-listed security info and event management biz reported turnover from sales of $190.4 million for calendar Q2, up 14 percent year-on-year, and a loss of $66.7 million versus a loss of $39.6 million.

He said customers continue to upgrade from "Legacy log-centric detection to cloud-native detection"; customers no longer "Treat risk and threat functions as distinct"; and customers rely more and more on automation.

The company reported operating expenses of $183 million in the quarter, up from $147.8 million a year earlier, with $27 million for the impairment of long-lived assets a contributing factor to the change.

Due to the redundancies, Rapid7 expects to incur restructuring charges of $24-32 million including "Cash expenditures for employee transition, notice period and severance payments" and more, it said in an SEC filing [PDF].

Some offices will also be permanently shuttered and this is expected to lead to an impairment charge of $4 million during this financial year.

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