Code42 confirms ‘difficult but necessary’ layoffs

Data loss prevention supplier Code42 has laid off an unspecified number of employees, the company has confirmed to Blocks and Files.

CEO Joe Payne told us: “With continued uncertainty in market conditions, Code42 made the difficult but necessary decision to eliminate a number of positions across the company. These changes will allow us to be cash flow positive in 2024.

“The affected employees are talented and dedicated professionals and we are providing support to each and every one to assist them with this transition. Code42 maintains healthy cash reserves which will enable us to continue to deliver innovative insider risk solutions to our customers.”

Code42 last year sold CrashPlan, its SaaS back-up solution for small biz customers, and is focusing on Incydyr, another SaaS for data loss prevention (DLP). Founded in 2001, the company has raised $137.5 million in funding – $52.5 million in 2012 and $85 million in 2015, the year Payne became its CEO.

Joe Payne, Code42
Joe Payne

Relatively few data protection companies focus just on DLP. Many see it as an adjunct to their core security and backup business and may use third parties. Rubrik, for example, is working with Zscaler to stop the unwanted export of sensitive files from its customers’ IT systems.

FileCloud is a DLP supplier, providing it as part of its collaboration software. Forecepoint is another. Data protector and manager Cohesity has its own DLP facilities.

Two recent prominent examples of data loss have been caused by malware introduced by the Fortra and MOVEIt file transfer services. Fortra offers its own ClearSwift Endpoint Data Loss Prevention facility. 

Progress Software, the supplier of MOVEit, also has a Content Scanning facility available for MOVEit. This relies on third-party DLP and scanning products.