Akamai Technologies said it has cut about 2 percent of its global workforce as part of a restructuring. Based on the company’s headcount at the end of 2020, that would amount to 160-plus jobs.
Effective March 1, Akamai said its business will be anchored by two newly created business groups, one focused on Internet security and the other focused on “edge technology,” which includes web performance and media delivery. Akamai declined to disclose which positions were eliminated or where they are based.
News of the layoffs came as the Cambridge-based company reported its 2020 revenue grew 11 percent, compared to the previous year, to $3.2 billion. It was the company’s first time surpassing the $3 billion mark.
Tom Leighton, the co-founder and CEO of Akamai, said in a press release that the company believes the world’s reliance on the Internet will continue to grow as employees work remotely and cyberattacks increase in volume and sophistication. He said on a call with investors Tuesday that the restructuring comes “from a position of strength.”
“With Akamai’s new organizational structure, I am confident we will be able to more nimbly support the dynamic needs of our customers and partners, and more effectively capitalize on emerging growth opportunities,” he said in the release.
The company reported on Tuesday that revenue from its security business topped $1 billion in 2020, growing over 25 percent from the year prior to become one-third of Akamai’s total revenue for the year.
As the company grows its security business, one prominent departure will be its chief security officer, Andy Ellis. The 20-year Akamai veteran announced he is leaving via Twitter on Tuesday.
Akamai said Rick McConnell, who currently serves as the president and general manager of the company’s web division, will lead the new security group. Adam Karon, the executive vice president and general manager of Akamai’s media and carrier division, will serve as chief operating officer and general manager of the new edge technology group.
Akamai employed about 7,700 workers globally at the end of 2019, and its workforce grew to 8,368 by the end of 2020, according to the company’s annual filings with the Securities and Exchange Commission. Akamai’s chief financial officer told analysts on Tuesday that the company expects the workforce reduction to cost about $7 million in the next quarter.