Data protection provider Veeam reportedly lays off 300 employees

CLOUD

Less than a year after letting go 200 employees, data protection provider Veeam Software Corp. has reportedly axed an additional 300 positions.

Blocks and Files reported the workforce reduction today, citing a LinkedIn post from a former senior campaign account manager at Veeam. The company acknowledged the layoffs in a statement without confirming the number of affected employees.

“We don’t publicly disclose confidential business plans but we can share we’re ramping up hiring in some areas, transitioning some roles to new teams, and retiring other roles,” Veeam Chief Operating Officer Matthew Bishop said in the statement. “Our primary focus today is providing the best possible support to those Veeam employees impacted by the changes and assisting them to find their next career opportunity.”

The workforce reduction comes about 10 months after Veeam let go 200 workers in a separate round of layoffs. Following those job cuts, the company was left with more than 5,000 employees.

Veeam disclosed at the time of last year’s restructuring that it’s profitable. A few weeks later, International Data Corp. released a report estimating that the company’s revenue grew 8.1% faster in the second half of 2022 than its top five rivals. IDC also determined that Veeam is the largest player in the global data protection market.

The company launched its first product, a backup and recovery tool for VMware environments, in 2008. In the 16 years since, the company has built up a customer base that includes more than 80% of the Fortune 500 and about 450,000 other organizations. Along the way, the software maker was acquired by investment firm Insight Partners in 2020 for $5 billion.

Veeam has maintained its brisk revenue growth partly by expanding beyond the VMware data protection market to adjacent segments. Today, the company’s product portfolio includes tools for preventing data loss in not only virtual machines but also Kubernetes clusters, Salesforce deployments and other technology environments. Furthermore, it provides applications that ease related tasks such as scanning backups for malware.

One of Veeam’s products, Disaster Recovery Orchestrator, helps administrators ensure that backup files are restored reliability after an outage or ransomware attack. The company disclosed last year that the product experienced 204% year-over-year growth in the second half of 2022. During the same time frame, demand for Veeam’s Microsoft 365 data protection tool jumped 73%.

The company’s latest round of layoffs comes a few months after rival Cohesity Inc. also announced a workforce reduction. The data management and security provider didn’t specify the number of affected employees, but disclosed that the job cuts were part of an effort to become cash flow-positive in 2024. 

Photo: Veeam