Cybersecurity firm IronNet, which was valued at $1.2 billion last year when it went public via a special purpose acquisition vehicle (SPAC), is cutting 55 jobs, or 17% of its workforce on account of adverse “market conditions.”
In a SEC filing, the Tysons Corner, Va.-based company said it would take a second-quarter pre-tax cash charge of $1 million toward one-time termination benefits, consisting of severance and related costs. The staff cuts will be completed by the end of June, and related cash payments will be substantially paid out by August 31, it said.
The workforce reduction is part of a broader plan to streamline operations for “higher efficiency, to reduce overall expenses and preserve cash,” IronNet said in its filing.
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Founded in 2014 by four-star general and former National Security Agency chief Gen. Keith Alexander, Iron Nethas had a volatile ride since going public. Its stock is down more than 75% from its initial valuation, and over 90% from its peak. On Friday (June 24), its stock closed at $2.76.
IronNethas touted its team’s experience in defense and government sectors, besides Silicon Valley smarts, to position itself as a cybersecurity vendor of choice, especially for federal projects. Alexander, who serves as the company’s CEO, was previously the highest-ranked military official of USCYBERCOM, an agency created to defend the nation’s cyberspace.
IronNet has raised $410.5 million from nine investors including Bridge water Associates, Forge Point Capital, C5 Capital and Kleiner Perkins, including $175 million in post-IPO equity from New York’s Tumim Stone Capital.
