Lacework, the cloud security company, has confirmed layoffs that slashed 20% of its workforce. The layoffs are part of a restructuring.

In March, Lacework said it had more than 1,000 employees, 85% of which were hired after the start of the COVID-19 pandemic.

The company said a claim on Twitter that the layoffs impacted 300 workers is a “significant overestimate.”

Last November, Lacework raised $1.3 billion in growth funding at a valuation of $8.3 billion. The vendor said that’s the largest funding round in security industry history.

Lacework addressed the layoffs and restructuring in an editorial on its website.

“Over the past several weeks and months, a seismic shift has occurred in both the public and private markets,” the company said. “While we do not have control of the environment around us, we do have a responsibility to control how we operate our business and make changes as needed to best position the company for continued and long-term success.”

‘Important Changes’ to Team, Business

Lacework said it’s making some “important changes” to its team and its business. That included making the “very difficult decision to say goodbye to some of our colleagues.”

Lacework said it has adjusted its plan to increase its cash runway “through to profitability” and significantly strengthened its balance sheet so “we can be more opportunistic around investment opportunities and weather uncertainty in the macro environment.”

“We have taken every effort to provide those impacted with severance encompassing compensation, health care coverage, and access to outplacement support,” it said. “As they pursue opportunities outside of the company we will help in whatever way we can.”

Lacework said its opportunity ahead remains unchanged. However, to preserve and strengthen its leadership position in this market for the long term, “we must make these changes.”

“We will continue to invest in building out our technology teams, who remain focused on innovating quickly,” it said.