Joseph F. Kovar
“What’s changed is just our perspective on the path to profitability. And we’ve been doing really well in the talent wars, and we’ve scaled up the workforce pretty heavily,’ Qumulo’s CEO tells CRN.
Balancing Act With An Eye On The Future
Employees of Seattle-based cloud storage technology developer Qumulo got hit June 29 with bad news as CEO Bill Richter told his team that the company laid off about 80 employees, or about 19 percent of its head count, as the company looked at ways to balance its resources for future growth.
The growth in cloud storage requirements as the amount of data businesses store grows and the ways they store that data changes is there, Richter told CRN in an exclusive interview. However, he said, while engineering and sales teams need more people to meet that growth, at the same time other parts of the company were not as essential and, given the current macroeconomic environment, the company made the painful decision to reduce those teams.
“What’s changed is just our perspective on the path to profitability,” Richter said. “And we’ve been doing really well in the talent wars, and we’ve scaled up the workforce pretty heavily. But you go through an economic cycle like this, and you’re like, ‘Hey, have we hired in certain places to aggressively? Can we run more lean? And by virtue of running leaner, go faster?’”
While much has been made in the past couple years of a talent shortage, Qumulo joins a growing list of tech companies, especially in the security industry, that have laid off employees.
Qumulo, which was founded in 2012, has received $300 million-plus in funding, and has enough cash on hand to reach profitability, Richter said. In addition, the company has access to a pool of credit that it does not plan on using, he said.
“Now, will we raise additional capital when capital becomes less expensive?” he said. “We might, but the plan for the businesses is become profitable with the strong balance sheet that we have today.”
Here is a look at what is happening at Qumulo and what to expect from the company on the technology side for the second half of 2022.