SecureWorks cutting 15% of staff, second mass layoff in months

After laying off around nine per cent of its workforce in February, SecureWorks Corp. (SecureWorks) is pulling out the axe again.

In a filing to the U.S. Securities and Exchange Commission (SEC), the cybersecurity company said it plans to reduce its headcount by approximately 15 per cent and “implement certain real estate‑related cost optimization actions.”

“[We intend] to rebalance investments cross-functionally in alignment with [our] current strategy and growth opportunities,” the filing reads.

Secureworks added that the changes it’s making will “better position [it] for continued growth with improving operating margins over time.”

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

According to news outlets, including TechCrunch, the last day for departing staff is expected to be Aug. 25.

In February, the company employed more than 2,100 full-time workers globally, according to a regulatory filing.

Major tech layoffs continue

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

Big names, including Rapid7, Dell, Discord, Telus, Amazon, Microsoft, Rogers, Ritual, and Meta, are significantly scaling back their staffing levels as they continue to navigate challenging economic conditions.

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Termination agreements for SecureWorks employees

As part of the layoff announcement, SecureWorks said in its SEC filing that it expects to “incur expenses up to approximately $14.2 million.”

“These expenses are anticipated to consist primarily of severance and other termination benefits, as well as real estate-related expenses,” the filing reads.

In Canada, non-unionized employees at SecureWorks 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 why you are still owed severance if you have been downsized 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.