Tech Layoffs 2024: Salesforce-Backed Security Compliance Automation Firm Drata Cuts 9% of Workforce To Enhance Operational Efficiency
Salesforce-backed Drata security compliance automation firm laid off around 9% of its employees to enhance its operational efficiency despite reporting growth in FY24.
San Diego, September 27: Drata, a US-based security compliance automation platform, has laid off 9% of its workforce. The tech layoffs in 2024 have affected several businesses and allied services targeted towards cost-saving and restructuring their existing businesses. The job cuts have affected thousands of employees across the world. The Drata layoffs, announced to enhance operational efficiency and drive sustainable growth, have affected 40 people in the workforce.
TechCrunch reported that Drata had witnessed impressive growth during the past seven months. The tech company achieved 100% year-on-year revenue growth in F24 and also confirmed that it would add 650 new customers each quarter. Compared to the previous year, the company had reportedly increased the number of employees by 52% in 2024 across seven countries. Disney Layoffs: The Walt Disney Company Lays Off Hundreds Corporate-Level Employees As Par of Cost-Cutting, Restructuring Business.
San Diego-based Drata increased its headcount as it acquired Harmonize in April and Oak9 after a month. The report mentioned that the tech company had grown too quickly, which was not good. In a statement, Drata said it would aim for "sustainable growth" as it laid off 9% of staff members.
The information about the Drata layoffs was shared by the company's director of communication, Sophia Hatef, in an email. She wrote that Drata had continued reporting extraordinary growth for nearly 3.5 years and "has refined its organizational structure, reducing its workforce by 9%,". Sophia Hatef also said in her email that the company thanked employees for their contributions. Luminar Layoffs: US-Based Self-Driving Tech Developer Cuts 30% of Its Workforce This Year Amid Restructuring and Cost-Saving.
Data, founded in 2020, integrates with clouds, SaaS apps, security systems and developer tools to help businesses collect information to ensure data privacy and security practices. In December 2022, Drata was successful in raising USD 300 million in funding, which made it a USD 2 billion company. The tech company is backed by tech giants like Salesforce, Iconiq Growth, Microsoft CEO Satya Nadella and former LinkedIn CEO Jeff Weiner.
(The above story first appeared on LatestLY on Sep 27, 2024 12:17 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).