Cybersecurity firm Zscaler to lay off 3% of workforce

San Francisco, March 3

US-based cybersecurity firm Zscaler has said to lay off about 3 per cent of its workforce amid a tough macroeconomic situation.

The company on Thursday shared about the layoffs, which will affect about 177 employees, reports CRN.

"Over the past 18 months, Zscaler doubled the size of our team to approximately 5,900 employees as we invested aggressively based on strong market momentum," Zscaler CFO Remo Canessa, was quoted as saying.

In response to the challenging economic environment, Zscaler launched a "targeted optimisation initiative to address inefficiencies in certain job functions and projects," which resulted in the 3 per cent workforce reduction, he added.

The announcement came as the company released results for the second quarter of its fiscal 2023, which ended on January 31.

In after-hours trading on Thursday, Zscaler's stock price fell 11.8 per cent to $118.32 per share, according to the report.

"After significantly growing our teams in recent years, we took a fresh look at our organisation and found opportunities to streamline operations and to align people, roles and projects to our strategic priorities," Zscaler Founder and CEO Jay Chaudhry, was quoted as saying.

"As a result of the review, we initiated our targeted cost optimisation plan to drive additional operational efficiency that best positions us to deliver profitable growth," he added.

Meanwhile, Software consultancy company Thoughtworks has announced to lay off nearly 500 employees, or 4 per cent of its global workforce to cut costs amid global macroeconomic conditions.

Nasdaq-listed Thoughtworks has more than 12,500 employees across 18 countries.