WithSecure is aiming to shed 120 staff as part of cost-saving measures over the next six weeks, as it vies to become more profitable in 2023.
The cyber security company, which last year spun off from F-Secure, has entered into six-week negotiations over job losses with unions, with staff informed that cuts are on the horizon. This is in accordance with Finnish employment law.
This process could lead to a reduction in global headcount by 9%, with 34 job losses expected in Finland. The company employs roughly 1,300 staff across the world.
“This hasn’t been an easy decision and we were evaluating all other options,” said Charlotte Guillou, chief people officer at WithSecure, to IT Pro.
“We feel for our employees and are offering all the support we can in the coming weeks of negotiating and beyond.”
WithSecure blamed the “macroeconomic situation” including increased inflation and the war in Ukraine as factors in its decision to let go of 120 staff.
The company also feels it needs to reduce its expenditure in line with how it expects to perform in 2023 and makes good on its promise to reach profitability by the end of the year.
Through these staffing cuts, the firm hopes to save €14 million (approximately £12.5 million) annually – with savings beginning in the second quarter of 2023.
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The company’s latest financial results revealed losses of €26.7 million for 2022, a significant increase against losses of €17.2 million during 2021. This is despite rising revenue.
“One of our key medium-term goals is to reach profitability by the end of 2023,” said Juhani Hintikka, president and CEO at WithSecure, in a statement to investors last week.
“We have seen some slowness in decision-making in the market lately, which impacts our industry in general. We need to adjust our cost structure in accordance with our outlook for 2023 and ensure we stay on track on our goal to reach profitability. Transforming into a profitable company is imperative for us to stay competitive”.
The corporate-oriented cyber security company was previously run under the F-Secure umbrella but was spun out in March 2022.
At the time, there were concerns over the slow growth of its consultancy business, and heavy spending on sales and marketing, especially in light of its relatively slow revenue growth.
