Citing the economic impact of the COVID-19 pandemic, local cybersecurity company Code42 said Thursday that it was forced to eliminate 25 positions and furlough 10 employees.
The cuts amount to about 7% of the company's workforce. The rest of Code42's 500-person staff will take reduced pay during the second quarter. The Minneapolis/St. Paul Business Journal reports that Code42 will continue to provide benefits for workers it has laid off, but the company did not say how long it would do so.
"These actions are in no way a reflection of the work of our talented team, but of the changing nature of the world around us," CEO Joe Payne said in a statement. "While we are committed to weathering this storm, we recognize that we are impacting lives, and we are providing a level of benefits to help those impacted through this economic and health crisis."
Code42 is the third-largest SaaS company in Minnesota, according to Biz Journal research. It had an annual recurring revenue of $130 million last year and has more than 50,000 global customers.
In early 2019, Code42 laid off 55 people when it pivoted from consumer data storage to B2B data security.
