Snyk, the cloud-native application security provider, has initiated layoffs impacting nearly 200 employees due to “significant” market shifts.

Peter McKay, Snyk’s CEO, detailed the layoffs in a blog. He said Snyk has laid off 198 employees, representing 14% of the company’s workforce.

Snyk is the latest business in the channel to announce layoffs. Microsoft, Oracle and Intel are among companies shedding workers.

While the business has continued to grow, Snyk has witnessed a number of significant market shifts. As a result, “we are restructuring and reducing our global workforce, McKay said.

Snyk’s Peter McKay

“In June, I shared that we needed to adapt to an evolved mindset balancing continued top-line growth with profitability, and committed to becoming free cash flow positive in 2024,” he said. “Our business continues to grow aggressively, more than doubling in size each year with currently over 2,300 customers. But we now must operate even more efficiently in order for Snyk to effectively withstand the continued headwinds facing the global economy.” 

McKay said the adjustments are required to “best position” Snyk for future growth.

Organizational Changes

Among organizations changes, Snyk is:

In addition, Snyk is reducing its spending in a number of other key areas. Those include its global real estate footprint, IT and subscription services, and business travel.

As for departing workers, McKay said Snyk’s leadership team is invested in ensuring they are “set up for success as you transition into this next phase of your career.”