Boston-based cybersecurity firm Rapid7 on Tuesday announced it was cutting 18 percent of its workforce, or about 470 jobs — one of the largest layoffs in recent years by a Boston tech company. The layoffs come amid rumors that the company has received a takeover bid from a private equity firm, Reuters has reported.
The cost-cutting plan will require Rapid7 to pay $24 million to $32 million in severance and other costs, the company said in a filing with the Securities and Exchange Commission. The plan also includes closing some offices, though the company did not specify where or how many. In 2019, Rapid7 moved into a large new headquarters office at the Hub on Causeway project atop North Station, and its profile has grown considerably in Boston’s business and tech world in recent years. The company even has its logo emblazoned on Bruins jerseys in the team’s first-ever jersey sponsorship deal.
Rapid7 was founded in 2000 and went public in 2015. Under chief executive Corey Thomas, Rapid7 has been an active acquirer, including paying $335 million for threat intelligence firm IntSights in 2021. In January, Rapid7 hired Twitter whistle-blower and security expert Peiter “Mudge” Zatko as an executive in residence. Rapid7 reported 2,623 employees as of the end of 2022.
Thomas said in a statement that the cuts announced Tuesday would enable Rapid7 to continue to grow while doubling its free cash flow next year. The layoffs were announced as Rapid7 reported its second-quarter results. Revenue increased 14 percent to $190 million in the quarter with a net loss of $67 million, up from a loss of $40 million a year earlier. Both results were better than analysts expected.
Shares of Rapid7, which had previously gained 17 percent this year, jumped 15 percent in after-hours trading Tuesday evening.