Rapid7 slashing workforce by 18% as part of restructuring

Rapid7 is joining the long list of major North American tech companies that have announced sweeping layoffs this year.

In a recent filing to the U.S. Securities and Exchange Commission (SEC), the cybersecurity giant announced that it’s eliminating approximately 18 per cent of its workforce as part of its “Restructuring Plan.”

“[The plan] is designed to improve operational efficiencies, reduce operating costs, and better align the company’s workforce with current business needs, top strategic priorities, and key growth opportunities,” the filing reads.

It remains unclear if Canadian employees are affected by the latest round of cuts.

Rapid7 said potential position eliminations in each country “are subject to local law and consultation requirements, which may extend this process beyond the fourth quarter of 2023 in certain countries.”

The company added that it plans to permanently close certain offices, but didn’t disclose which locations will be shuttered.

However, Rapid7 expects the closures to “result in an impairment loss of approximately $4 million that will be recorded during 2023 as the exit activities are finalized in each location.”

According to LinkedIn, the company employs a total workforce of more than 3,000 people. Over 70 workers are located in Canada.

Major tech layoffs continue

The reduction at Rapid7 comes amid a flurry of tech sector layoffs in 2023.

Big names, including Dell, Discord, Telus, Amazon, Microsoft, Rogers, Ritual, and Meta, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

SEE ALSO
• Firm launches $130M class action against Shopify for breach of contract
• Online tutor service Paper Education cuts 20% of corporate staff
• Where are layoffs happening in Canada?

Termination agreements for Rapid7 employees

In a letter to staff on Aug. 8, CEO Corey Thomas said affected Rapid7 employees will be “eligible to receive severance packages, including continued healthcare coverage for the length of the severance period, as well as outplacement services for career support.”

For workers outside the U.S., Thomas noted that there is a “broad range of employment laws” that need to be taken into consideration.

In Canada, non-unionized employees at the cybersecurity giant are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Severance can be as much as 24 months’ pay, depending on a number of factors.

LEARN MORE
• Severance pay technology industry employees
• Rights to severance for provincially regulated employees
• Severance entitlements during mass layoffs

WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract.

We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount, which happens often, you have been wrongfully dismissed and are entitled to compensation.

In some cases, employers pressure staff into accepting poor severance packages, such as imposing a deadline for accepting the offer.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue a claim for full severance pay.