A security compliance automation tool called Drata has let go of 40 employees, 9% of its staff
Data helps companies follow the rules like SOC 2 and GDPR.
Drata started in 2020 and worked with many clouds, SaaS apps, developer tools, security systems, etc. It helps companies gather the proof to show that their data privacy and security measures are working.
Even though there have been more layoffs in the tech business in 2024, Drata reported impressive growth numbers only seven months ago. The San Diego-based company said its revenue grew by 100% year over year in its fiscal year 2024 (FY24). It also noted that it was adding “650 new customers each quarter” and hired several top executives.
Drata also said it had hired 52% more people in seven countries over the previous year. This number will have grown in the following months as it made its first acquisitions, starting with Harmonize in April and then Oak9 a month later.
However, growth doesn’t always mean a good bottom line, significantly if the business has grown too quickly. In a comment to TechCrunch, after we got a tip about the layoffs, Drata talked about “sustainable growth.”
Drata has been increasing for the past three and a half years. The company said in an email that its director of communications, Sophia Hatef, had changed how the business is organized and cut jobs by 9%. “We are very thankful for the affected employees and their actions.” This strategic move aims to improve business efficiency and drive long-term growth as the company plans for a possible IPO in the future.
Drata has raised more than $300 million. The most significant chunk of that money came from an investment of $200 million in December 2022, which made the company worth $2 billion.
Well-known institutional investors like Iconiq Growth and Salesforce Ventures, Microsoft CEO Satya Nadella, and former LinkedIn CEO Jeff Weiner have backed it.