N-able has cut or restructured about five percent of its workforce despite reporting strong financial results in its third quarter.
N-able president and CEO John Pagliuca said that the moves were part of the annual planning process where all roles and responsibilities were evaluated across the company and a focused action was taken to reduce and in some cases, restructure certain positions.
“Our business remains healthy and therefore this may have felt a bit unexpected.”
He added the software vendor, which currently has about 1,400 employees and is a spin-off of SolarWinds, must be proactive to best position the business and its teams for future growth so that it can successfully navigate through an incoming recession.
The layoffs took place across the company but were not focused on a particular discipline, business or location. About five percent of the workforce was reduced and restructured, which would have affected about 70 employees.
Pugliuca said that the company was doing its best “to support the impacted individuals based on their position, tenure with the company, location and other unique situations”.
For its FY22 third quarter, N-able had a total revenue of $93.5 million, which was about six percent year-over-year growth, or about 13 percent year-over-year growth on a constant currency basis. Subscription revenue was $91.2 million, GAAP gross margin was 83.9 percent and non-GAAP gross margin 84.8 percent.
