The MSP platform maker said the decisions reflect its “ongoing commitment to operating efficiently, investing with urgency in innovation and ensuring resources are directed toward strategic priorities that drive customer success.”
Kaseya Thursday confirmed that it has laid off 200 employees as part of what it is calling a “focused investment strategy to align resources with the areas that will deliver the greatest impact.”
In a statement supplied to CRN, Kaseya, which had over 5,000 employees globally as of last April, said the decisions made reflect the company’s “ongoing commitment to operating efficiently, investing with urgency in innovation and ensuring resources are directed toward strategic priorities that drive customer success.”
Furthermore, the company, which is privately held and backed by private equity heavyweight Insight Partners, said it will continue to hire in “customer-facing, product and engineering roles as it accelerates investment in international expansion and innovation particularly in AI driven capabilities.”
The news of the layoffs was first reported by the South Florida Business Journal.
The cuts come just 10 days after Kaseya confirmed that the company does not plan to hold its DattoCon conference next year, but instead is focusing on Connect as its primary North America event.
Kaseya took over DattoCon after acquiring rival vendor Datto for $6.2 billion in 2022 with a significant portion of the funding coming from a debt package of $3.7 billion and $1 billion in preferred equity financing.
At DattoCon, Kaseya CEO Rania Succar, who was hired in June after CEO Fred Voccola stepped aside suddenly to become vice chairman in January, told MSPs that the company will evolve into a platform that truly empowers MSPs by becoming an AI-first company.
As part of that effort, Succar announced that it had acquired AI-based email security provider Inky. Additionally, she revealed a major investment in unifying Kaseya’s massive data layer, spanning three exabytes of backup data and 16 million endpoints, to create intelligence-driven tools for real-time automation, advanced analytics and AI assistants.
“Think about the scripting capabilities you’ll have,” she said. “Think about what that means for the custom solutions you can build for your customers. This is game-changing.”
This week, Kaseya also sent a product update press release that boasted 90 enhancements designed to help MSPs grow revenue.
“These new capabilities deliver on the direct feedback we have received from our partners” said Jim Lippie, chief product officer at Kaseya, in a prepared statement. “MSPs want to grow faster, expand margins and protect customers from rising cyberthreats, without having to increase labor cost. We are accelerating our pace of innovation to deliver exceptional customer outcomes and lead the market as the only true end-to-end IT and security platform for small business.”
One MSP executive, who asked not to be named, said the layoffs are a small number of employees relative to the total number of employees at the company. “I think getting some fresh faces in there is a good idea and, as such, there needs to be some turnover,” said the executive.
