Feeds

Websense sharpens the axe as sales fall

Pink slips for one in 20

Build a business case: developing custom apps

Web filtering firm Websense is reportedly planning to lay off 5 per cent of its workforce to cut costs.

The move is a response to a slowdown in security spending during the recession. PC World reports that Websense plans to lay off 70 people from its worldwide workforce of 1,400.

In a statement, Websense confirmed it was planning to make job cuts without saying which divisions of its business would be hit or specifying a timescale.

We have been aggressively managing our expense structure during the recession without any reduction in personnel costs.

The recession has continued, and based on our outlook for the second half of the year, it is now necessary for us to take additional actions and reduce our personnel related costs globally. Out of respect for our employees, we are not prepared to provide additional details at this time.

Websense announced last week reported Q2 revenue of $79.5m and profits of $3.1 million compared with a net loss of $8.2m Q2 2008. These figures, taken in isolation, look rosy enough but the big problem for Websense is that its billings (sales) in Q2 2009 came in at $82.2m, compared to $87.3 million in Q2 2008.

A strong dollar hurt Websense's sales but other factors were also at play. Some Websense customers are either shortening the length of contracts or paying for fewer licences as their businesses shrink, resulting in knock-on effects for the software developer. This factor was only partially offset by financially healthier customers upgrading to Websense's new line of web security gateways.

Websense isn't the only security firm to cut jobs to cope with the economic downturn. Last October Symantec announced a similar 4.5 per cent headcount cull. ®

The essential guide to IT transformation

More from The Register

next story
Rupert Murdoch says Google is worse than the NSA
Mr Burns vs. The Chocolate Factory, round three!
e-Borders fiasco: Brits stung for £224m after US IT giant sues UK govt
Defeat to Raytheon branded 'catastrophic result'
Know what Ferguson city needs right now? It's not Anonymous doxing random people
U-turn on vow to identify killer cop after fingering wrong bloke
Germany 'accidentally' snooped on John Kerry and Hillary Clinton
Dragnet surveillance picks up EVERYTHING, USA, m'kay?
Snowden on NSA's MonsterMind TERROR: It may trigger cyberwar
Plus: Syria's internet going down? That was a US cock-up
Who needs hackers? 'Password1' opens a third of all biz doors
GPU-powered pen test yields more bad news about defences and passwords
Think crypto hides you from spooks on Facebook? THINK AGAIN
Traffic fingerprints reveal all, say boffins
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.