Rapid7, a prominent US cybersecurity company, has announced plans to cut approximately 470 jobs, equivalent to 18% of its workforce, as part of a comprehensive restructuring strategy. This decision was disclosed through a filing with the US Securities and Exchange Commission (SEC). The restructuring initiative aims to refine the company's operations and align resources for enhanced efficiency.
According to the filing, Rapid7's restructuring plan outlines a reduction of its workforce by about 18%, projecting costs ranging from $24 million to $32 million associated with the restructuring process. Despite the company's strong performance, CEO Corey Thomas conveyed that making strategic decisions while in a position of strength allows for intentional restructuring.
The impacted employees will be provided with severance packages, inclusive of continued healthcare coverage throughout the severance period, along with career support through outplacement services. In consideration of diverse employment laws outside the US, the company has pledged to guide employees and their managers through consultation processes where required.
Rapid7's CEO also conveyed that all employees would receive detailed communication regarding their future paths and localized requirements. The restructuring plan, which encompasses a reduction in workforce and the permanent closure of specific office locations, is anticipated to incur the majority of its charges during the third and fourth quarters of 2023.
The Boston-headquartered company, known for its cybersecurity expertise, had a total of more than 2,600 full-time employees, with over 700 based in Massachusetts. The restructuring measures underline Rapid7's commitment to optimizing its operations and resources for long-term growth and adaptability in the cybersecurity sector.
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Inputs from IANS
