One Trust and Cybereason two cybersecurity vendors owning a stack of $575 million combined since 2020 reached about billion-dollar valuations in the expanding cybersecurity market. They have confirmed that they have gone through massive staff cuts as the capital market damaged late startup companies, affecting 25% of their total workforce.
One Trust chief executive Kabir Barday says, “I know this news is surprising, especially as you heard last month that the business is on track with record quarters and increasing customer demand. However, capital markets sentiment shifted to a more balanced approach between growth and profitability, and at this time, we have decided the best course of action is to recognize to position One Trust for continued long-term success.”
Like OneTrust, Cybereason also exhibited its fund-raising prowess and multi-billion dollar unicorn valuations. At the same time, they have cut 10% of the total staff.
OneTrust recently raised $300 million in a Series C round. In December 2020 company’s valuation rose to $5.1 billion.
The Israel-based Cybereason has completed a Google Cloud partnership with a $50 million investment from Google and raised $750 million in funding from other sources.
Cybereason chief executive Lior Div stated that staff cutbacks are necessary in order to navigate capital market turbulence. Cybereason has also secured a $3 billion worth valuation for the company.
Not only OneTrust and Cybereason but also other ‘unicorn’ companies like Lacework has cut 20 percent of their workforce and Mozilla carried out a 250-employee layoff.
