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Drata , a security compliance automation program that facilitate companies stick by to frameworks such asSOC 2andGDPR , has laid off 9 % of its workforce , total to 40 the great unwashed .

found in 2020 , Drataintegrates withdozens of clouds , SaaS apps , developer prick , security measure systems , and more , helping businesses collate the necessary grounds to prove that their data privacy and security drill are in order .

While layoffs have continued to plague the tech industryin 2024 , Dratareportedsome telling growth metric just seven months back . For its fiscal year 2024 ( FY24 ) , the San Diego - base company take 100 % tax income growth year - on - twelvemonth , said that it was adding “ 650 new client each quartern , ” and made a twine of aged administrator hires .

Notably , Drata also say at that prison term that it had increase its headcount by 52 % across seven countries over the old class , a figure that will undoubtedly have grow in the months that followed as it made its first learning starting withHarmonize in April , followed byOak9 a month subsequently .

But growth does n’t inevitably exchange into a healthy bottom line , peculiarly if a society has grown too quick . Drata allude to “ sustainable growth ” in a program line to TechCrunch after we received a pourboire about the layoff .

“ Drata proceed its 3.5 years of extraordinary emergence and has refine its organizational complex body part , reducing its men by 9 % , ” the society said in an email commit by the company ’s director of communication , Sophia Hatef . “ We are incredibly grateful for the impacted employees and their donation . This strategic move direct to enhance operational efficiency and get sustainable growth as the company charts its row toward a likely IPO in the hereafter . ”

Dratahasraised well over $ 300 million in financial support , the bulk of which come via a$200 million investmentin December 2022 , which give the party a valuation of $ 2 billion . Its backers include renowned institutional investors such as Iconiq Growth and Salesforce Ventures , as well as Microsoft CEO Satya Nadella and former LinkedIn CEO Jeff Weiner .

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