Cohesity cuts staff weeks after raising $250M at doubled valuation
Cloud data protection provider Cohesity has confirmed targeted layoffs that involved a “small percentage” of employees — or “well under 100” people, according to Silicon Valley Business Journal.
The cuts come less than one month after Cohesity disclosed a $250 million Series E funding round. Cohesity’s valuation was $2.5 billion at the time of the funding, the company said in the April announcement.
Cohesity has been a fast-growing provider of cloud-centric data protection, backup and disaster recovery (BDR) and other software services that protect hybrid IT systems. Key rivals include Druva, Rubrik and Veeam, among many others.
If Cohesity extends down-market into the SMB sector, additional rivals could involve MSP-friendly software and data protection companies like Acronis, Axcient, OpenText’s Carbonite, and Datto, among many others.
On the partner front, Cohesity in October 2019 hired Bill Lipsin as its VP of global channel sales. And in January 2020, the company named Commvault veteran Martin Gibbons as its head of channel in EMEA (Europe, Middle East, Africa).
Cohesity Layoffs: Company Statement
Describing the recent job cuts, Cohesity offered this statement to the San Jose Business Journal:
“To manage through this time of economic uncertainty and volatility, Cohesity has taken steps to reduce our operating expenses. Unfortunately, as part of that effort, a small percentage of employees have been furloughed or are no longer with the company. This is not a decision the company takes lightly. We value contributions from each and every employee and regret that the pandemic has created this challenging period.
Cohesity will continue to deliver best-in-class innovation and support to our customers and partners during and after the crisis. The company remains focused on spending investment dollars wisely to ensure fiscal responsibility and long-term success.”