In a regulatory filing, Secureworks said that on February 3, it committed to a plan and announced to employees on February 7, 2023 that it is aligning its investments more closely with its strategic priorities by reducing the company’s workforce by approximately 9% and implementing certain real estate-related cost optimization actions. Under this plan, the company intends to rebalance investments across all functions to align with the company’s top strategic priorities and growth opportunities, such as higher value, higher margin Taegis solutions and other priorities, in order to balance continued growth with improving operating margins over time. The company currently estimates that it will incur expenses of approximately $16M, consisting primarily of severance and other termination benefits, as well as real estate-related expenses. The substantial majority of these expenses will result in cash expenditures. The company expects to recognize these expenses in fiscal year 2023 and to complete the plan during the first quarter of fiscal year 2024, although the timing of workforce reductions may vary by country based on local legal requirements.
Published first on TheFly
