SecureWorks to cut 9% of its workforce, as layoffs could affect more than 200 employees. The company had 2,351 employees as of Jan. 28, 2022, according to the cyber-security company’s latest annual report, which means the layoffs could affect about 212 employees.
SecureWorks will also implement real estate-related cost optimization actions. The company expects to record expenses of $16 million related to the cost-cutting actions, primarily in the form of severance and other termination benefits, with the expenses expected to be recognized in fiscal 2023. Separately, the company said Chief Financial Officer Paul Parrish will retire effective May 5, after about 3 1/2 years in the role.
The stock, which was still inactive in premarket trading, has run up 26.5% over the past three months, while the ETFMG Prime Cyber Security exchange-traded fund HACK, -0.79% has gained 8.4% and the S&P 500 SPX, -0.20% has tacked on 8.0%.