Kape Technologies, the cybersecurity firm behind well-known VPN services like ExpressVPN, has recently laid off approximately 180 employees, constituting about 12% of its workforce. This move comes as the tech industry grapples with a significant number of layoffs, with over 200,000 tech jobs affected across various companies.
In an official statement released on Saturday, Kape Technologies explained that the organizational restructuring was essential to ensure the company’s ability to provide top-notch protection to its customers in the long term. The layoffs impacted multiple departments, including talent acquisition, human resources, support, engineering, and IT. While the affected employees have been notified, the process might take longer in certain countries due to local laws and business practices.
Dan Gericke, the former Chief Technology Officer of ExpressVPN, disclosed his decision to leave the company on LinkedIn, stating that he departed along with several other talented colleagues who were terminated. He emphasized that the decision to part ways was on amicable terms.
Kape Technologies, headquartered in London, also owns Private Internet Access and CyberGhost VPN. The company expressed that the decision to reduce its workforce was not taken lightly and that it would continue to support affected workers through the transition.
The restructuring at Kape Technologies is a part of a larger trend in the tech industry, with many companies implementing layoffs in recent times. Layoffs.fyi, a tracker of job cuts, reported that over 900 tech companies have let go of approximately 223,089 employees this year.
Among the notable companies affected, subscription commerce firm Milkbasket laid off 400 employees, while Viaplay, an online streaming service, let go of “more than 25%” of its workforce. Additionally, Microsoft reportedly laid off over 1,000 employees earlier this month.
The shift in Kape Technologies’ ownership likely contributed to the decision, with Israeli billionaire Teddy Sagi acquiring the company in May through his firm Unikmind Holdings.
As the tech industry continues to navigate challenges and changes, many professionals are grappling with the impact of these layoffs. Kape Technologies, as well as other tech companies, are focusing on finding a balance between operational efficiency and providing support to their workforce during these transitions.