FireEye lays off ten percent of staff

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FireEye lays off ten percent of staff

FireEye, one of the top next-generation security software makers, is laying off ten percent of its workforce - about 400 employees - in a major restructuring after reporting a US$139.32 million loss for the second quarter ended 30 June.

Chief executive Kevin Mandia, who took over the company just three months ago, said in an interview with CRN USA that the cutbacks will impact staffing, discretionary spending and infrastructure across all of the "all different groups."

When asked specifically if the channel organisation will be affected, FireEye CFO Mike Berry said: "We will look at all the lines of business to get the right go to market and capacity... We will look at everything."

That said, Berry stressed that having "great products and being able to sell them and get them to our customers" is critical to the company's success going forward.

FireEye shares were down US$2.26 or 13 percent to US$14.50 in after-hours trading.

The cutbacks came even as FireEye posted better than expected non-GAAP net loss per share of 33 cents on a 19 percent increase in sales to US$175 million.

The Wall Street consensus was a non-GAAP net loss of 39 cents per share on sales of US$181.7 million.

The cutbacks are part of a plan approved by the FireEye board of directors to "reduce operating expenses and align the company's expense structure" in order to achieve non-GAAP profitability in the fourth quarter next year.

As a result of the restructuring, FireEye said it expects to recognise pre-tax charges of US$15-20 million in the third fiscal quarter related to severance and one-time costs associated with the cutbacks.

This article originally appeared at crn.com

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