Varonis Lays Off 5% of Staff, Stock Plunges as Renewals Drop

2nd Round of Layoffs Since 2022 Comes 2 Months After $150M Email Security Purchase Michael Novinson (MichaelNovinson) • October 29, 2025

Varonis cut 5% of its workforce and saw its stock price nosedive after disclosing a sharp drop in renewal rates for its on-premise subscription business.

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The Miami-based data security vendor late Tuesday announced plans to reduce its staff by 5% - or roughly 120 employees - to better align expenses with revenue expectations. The underperformance of the federal vertical caused a notable headwind for Varonis despite its accounting for just 5% of annual recurring revenue, prompting the company to downsize its federal team and revisit its strategy.

"When we look at the actions that we have taken, including the reduction of 5% of our headcount and adjusting some of the costs to better adjust to the top line…we're trying to ...