LogLogic denies rumors of massive layoffs, managerial shake-upThe economy is causing realignment of workers in every industry, and the security business may be no exception.
But despite rumors of sizeable layoffs happening at LogLogic, maker of log management and intelligence solutions, the company claims otherwise.
Sources recently told SCMagazineUS.com that LogLogic may have fired as much as 30 percent of its workforce. But Dominique Levin, executive vice president of strategy at San Jose, Calif.-based LogLogic, denies this.
“Yes, we have had some layoffs,"' she said. "But overall our business is still quite strong. Nevertheless, we took a very conservative outlook for 2009, and we did have a small reduction in force. We will not disclose the number of people involved specifically.”
She did say that the reduction in force was mainly in the United States, where the company also has offices in New York.
Sources also claimed that two of the LogLogic co-founders had departed.
But Levin explained: “Two of the co-founders (Jason DeStefano and Tom Grobowski) are still here, but we do expect their role to change in the near future.”
Levin also played down reports that the company was set to be acquired.
“I am not aware of any moves as to our being acquired," she said. "We are aggressively pursuing our own destiny. We are certainly not a distressed company that could be picked up cheap.”
In October, the company announced record growth, saying its revenue gains have outpaced industry averages. This was aided by new partnerships with VMware and Sun Microsystems.
And last February, the company closed $13.5 million in a fourth round of venture funding, bringing total investment to $47.7 million.
But with the nation's economy in a free-fall, even the largest IT firms are not immune to the carnage. In October, leading security firm Symantec announced a employee cutback that will trim 4.5 percent off its workforce budget. And just Thursday, the Wall Street Journal reported that Microsoft is considering job cuts.