Varonis, an Israeli cyber security company that is publicly traded on the NASDAQ, is joining the Startup Nation list of firms forced to downsize because of the ongoing worldwide financial crisis. Varonis will be letting go of 110 employees, or about 5% of its estimated 2,270 strong work force over what the company said was weakness in the European market and concerns that it will spill over into a slowdown into the US market..
The terminations include about 40 people in Israel, where Varonis has about 700 employees in total.
This is already the second such round of terminations by an Israeli firm already in November. Just the other day, Checkmarx, an Israeli cyber security startup and a unicorn, revealed that it is laying off 100 employees, or about 10% of its workforce, including 40 people in Israel.
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The news comes after Varonis shares fell 38% in the last month alone. As of end of day last Friday alone its shares fell 5.82% to $16.01, leaving the company with a market cap of $1.765 billion, down from almost $3 billion at one time.
Varonis had reported expected revenues of $139-142 million in Q4 2022, or year-over-year growth 10% to 12%. But this is well below a previously expected growth rate of 20%.
Varonis explained the move saying, “Varonis is announcing streamlining and savings measures due to weakness in the European market and concerns that it will spill over into a slowdown into the US market. The measure includes layoffs of 5% of the work-force across the organization as well as other streamlining and savings measures and is designed to balance between the company’s ability to present profitability without harming potential growth and innovation.”
Founded in 2005, Varonis calls itself a pioneer in data security and analytics, “fighting a different battle than conventional cybersecurity companies.” Varonis focuses on protecting enterprise data on premises and in the cloud: sensitive files and emails; confidential customer, patient and employee data; financial records; strategic and product plans; and other intellectual property.
The Varonis Data Security Platform detects insider threats and cyberattacks by analyzing data, account activity, perimeter telemetry, and user behavior; prevents and limits disaster by discovering, classifying and locking down sensitive, regulated and stale data; and efficiently sustains a secure state with automation.
Varonis serves a variety of use cases including data protection, threat detection and response, and compliance.