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Crossroads Systems Inc. (Nasdaq: CRDS) will lay off around 20 percent of its staff while the company waits to see revenue from its backup appliance and database monitoring products (see Crossroads Reports Financials).
Crossroads CEO Rob Sims said Thursday night the company will lay off around 23 of 115 employees as the Austin, Texas-based company diversifies from its traditional storage router business.
This isn't the first layoff for the company. Crossroads laid off 10 percent of its staff in October 2001 (see Crossroads Furloughs 10%). The current layoff will impact all departments, Sims says. And as before, the measure is aimed at cost cutting.
The major initiative that we have undertaken to control expenses is the restructuring, Sims told analysts on a conference call. This delay in topline growth is primarily why it is important to restructure our storage business.
The reduction comes after losses widened last quarter. Crossroads lost $3 million or $0.12 per share last quarter compared to a loss of $2.5 million or $0.10 in the previous quarter and $1 million or $0.04 in the same quarter last year. Total revenue of $4.7 million for last quarter dropped 27 percent sequentially from $6.6 million and 30 percent from $7.1 million in the same quarter last year.
With the move to the cloud, CISOs must shift priorities from operating security programs to overseeing (monitoring and auditing) outsourced cybersecurity programs.
2022 was a boon year for IT salaries. 2023 came in like a beast with layoffs, raise freezes, and ChatGPT, but that beast has few teeth.
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