Markets: News  

SecureWorks Inc. (SCWX) disclosed Tuesday that it will lay off about 9% of its employees, as part of a plan to cut costs. The company had 2,351 employees as of Jan. 28, 2022, according to the cyber-security company's latest annual report, which means the lay offs could affect about 212 employees. SecureWorks it will also implement real estate-related cost optimization actions. The company expects to record expenses of $16 million related to the cost-cutting actions, primarily in the form of severance and other termination benefits, with the expenses expected to be recognized in fiscal 2023. Separately, the company said Chief Financial Officer Paul Parrish will retire effective May 5, after about 3 1/2-years in the role. The stock, which was still inactive in premarket trading, has run up 26.5% over the past three months, while the ETFMG Prime Cyber Security exchange-traded fund (HACK) has gained 8.4% and the S&P 500 has tacked on 8.0%.

-Tomi Kilgore

(END) Dow Jones Newswires

February 07, 2023 09:23 ET (14:23 GMT)

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