At a time when hacking is on the increase, the recent Bitfinex hack a case in point, the cybersecurity industry should be thriving. But that has not been the case for FireEye, a leading cybersecurity firm, which recently announced layoffs following poor earnings in Q2 that were below in-house projections.
CFO Michael Berry plans to restructure operations to respond to the changes seen in criminal attacks where cybercriminals are leveraging ransomware to target the financial sector. FireEye has also cut its adjusted full-year sales outlook and its full-year revenue forecasts, lowering expectations for Q3.
Here are the numbers:
$175 million | Revenues for Q2, in-house estimates were between $178 million and $185 million
$80 million | The net saving that the company expects from efficiency efforts
300 to 400 | The number of staff members to be laid off from FireEye’s 3,400-member workforce
62% | The percentage drop in the share price in the last 12 months
16.2% | The percentage drop in share price following the company’s earnings announcement