Security compliance unicorn Drata is laying off 9% of its workforce

Drataa security compliance automation platform that helps companies adhere to frameworks such as South Oil Company 2 The GDPR laid off 9% of its workforce, which amounts to 40 people.

Founded in 2020, Drata Integrates with Dozens of clouds, SaaS applications, developer tools, security systems, and more, helping companies gather the evidence needed to prove that their data privacy and security practices are sound.

As layoffs continue to sweep the tech industry in 2024, Drata I mentioned Some impressive growth metrics from just seven months ago. For fiscal year 2024 (FY24), the San Diego-based company achieved 100% year-over-year revenue growth, said it was adding “650 new customers per quarter,” and made a series of senior executive hires.

It is worth noting that Drata also said at the time that it had increased its headcount by 52% in seven countries over the previous year, a number that will undoubtedly grow in the following months as it makes its first acquisitions starting with Coordination in Aprilfollowed by Oak9 a month later.

But growth does not necessarily translate into a healthy outcome, especially if the company has grown very quickly. Drata cited “sustained growth” in a statement to TechCrunch after we received information about the layoffs.

“Drata continues its exceptional growth over 3.5 years, has improved its organizational structure, and reduced its workforce by 9%,” the company said in an email sent by its communications director, Sophia Hatf. “We are extremely grateful to the affected employees and their contributions. This strategic move is intended to enhance operational efficiency and drive sustainable growth as the company charts its course towards a potential IPO in the future.

Drata has raised over $300 million in funding, the bulk of which came through a $200 million investment in December 2022, giving the company a valuation of $2 billion. Its backers include well-known institutional investors such as Iconiq Growth and Salesforce Ventures, as well as Microsoft CEO Satya Nadella and former LinkedIn CEO Jeff Weiner.