LevelBlue, a managed cybersecurity services firm based in Dallas, made a tough decision to lay off 15% of its 1,000-person workforce following the sale of a majority stake by AT&T to WillJam Ventures. The job cuts came just months after the company rebranded from AT&T Cybersecurity to LevelBlue. The layoffs are seen as a way for LevelBlue to refocus its resources on enhancing its managed security services. The company stated that it is still in the process of hiring in areas that better align with the needs of its partners and customers.
The layoffs at LevelBlue were first reported by Omdia Managing Principal Analyst Eric Parizo and later confirmed by the company. This move came after AT&T announced in November its decision to transfer its security software, managed security operations, and security consulting resources to a joint venture majority owned by WillJam Ventures.
Former employees of LevelBlue took to LinkedIn to share their job loss experiences, with many expressing disappointment about losing their roles in product management and business development. These employees had expertise in various cybersecurity areas such as payment security, fraud, and identity and access management. The decision to let go of employees has also sparked discussions on TheLayoff.com, shedding light on the impact of these layoffs on the workforce.
Bob McCullen, the CEO of LevelBlue and founder of WillJam Ventures, has been steering the company since April. McCullen previously led Trustwave before its acquisition by Singtel. Under McCullen’s leadership, LevelBlue aims to expand its business globally and increase its presence outside the United States. The company is also considering acquisitions to enhance its technology offerings and broaden its geographical reach.
The struggles faced by large global managed security providers, including LevelBlue, reflect a broader trend within the industry. Many companies in this sector have faced challenges as customers explore new technologies and security approaches. Trustwave, for example, has experienced a decline in headcount since its acquisition by Singtel. Similarly, Alert Logic saw a significant drop in its workforce after its acquisition by HelpSystems, now known as Fortra. Secureworks, majority owned by Dell, has also witnessed a decrease in its employee count.
Overall, the layoffs at LevelBlue signal a period of transition and strategic realignment for the company. As it navigates these changes, LevelBlue remains focused on delivering high-quality managed security services while exploring opportunities for growth and expansion in the cybersecurity market.