Anjuna Security’s path to recovery after two rounds of layoffs

By the end of 2021, the cybersecurity company Anjuna Security had scaled its headcount to around 75 employees. The rapid expansion was intended to support anticipated hypergrowth across its sales, customer success, and support teams. However, the market conditions shifted significantly in 2022. As enterprise clients became harder to land, the company found itself overextended. To address these financial pressures, Anjuna conducted two rounds of layoffs, cutting a portion of its staff and then executing a second round of workforce reductions months later.

Rebounding from these cuts required a concerted effort to keep the remaining team motivated. Ayal Yogev, the CEO and co-founder of Anjuna, discussed the company’s recovery strategy with host Isabelle Johannessen on TechCrunch’s Build Mode podcast. Yogev emphasized that the company survived the volatile market by acting quickly and maintaining a strong internal culture. “We have only one word when it comes to culture, and that’s care,” Yogev said, noting that this involved supporting departing employees with severance and job opportunities while maintaining transparency with those who stayed.

A major challenge during the restructuring was rebuilding trust, particularly after the second round of layoffs. Yogev pointed out that the company actively avoided creating a blame-oriented environment. He explained that the worst companies look for someone to blame, which ultimately creates a culture where people are just trying to not make mistakes. Yogev described this dynamic of blaming as completely counterproductive to the recovery process.

Today, Anjuna is rebuilding with a more deliberate hiring approach. The company is focusing on operational efficiency, aligning its sales growth closely with actual market demand, and utilizing new tools to manage workloads without overexpanding.

Meanwhile, early-stage startups continue to seek growth opportunities through industry platforms. TechCrunch is currently accepting applications for Startup Battlefield, a startup competition event designed for early-stage companies that have a minimum viable product. The competition will culminate at the TechCrunch Disrupt event, which is scheduled to take place from October 13 to 15 in San Francisco.

Why it matters

Anjuna Security’s experience navigating two rounds of layoffs offers lessons for founders on maintaining internal culture and rebuilding trust during volatile market conditions. The company’s recovery highlights how prioritizing transparency and avoiding a culture of blame can help a startup stabilize its operations after a downturn.