New Delhi: Rapid7, a cybersecurity company, is laying off around 470 employees, or 18 per cent of its workforce.
In a filing, Rapid7 claimed with the US Securities and Exchange Commission (SEC) that job cuts were part of a restructuring plan.
“The restructuring plan includes reduction of the Company’s workforce by approximately 18 per cent. The company estimates that it will incur approximately $24-$32 million in charges in connection with the restructuring plan,” it said in the filing.
Rapid7 CEO Corey Thomas told employees that while it may be surprising to take this measure when we are meeting performance expectations, “making decisions from a place of strength allows us the opportunity to restructure intentionally”.
He said all employees will receive an email with additional detail based on their path forward and local requirements.
The concerned employees will be eligible to receive severance packages, including continued healthcare coverage for the severance period, as well as outplacement services for career support.
“Outside the US, there is a broad range of employment laws, and we’ll take great care to guide” employees and “their managers through these processes, such as required consultation periods”.
In the third and fourth quarters of 2023, the Boston-based company expects most of the restructuring charges to be incurred.
The company plans to permanently close certain office locations in connection with the restructuring plan.
The company had over 700 employees in Massachusetts and over 2,600 full-time employees.
