Nearly 300 workers at Akamai are being affected by recent layoffs as the company directs its attention towards its most promising areas of growth and ensuring long-term profitability.

As part of its financial results for the first quarter ending on March 31, Akamai has announced layoffs that will impact nearly 300 employees, as reported by the Boston Globe.

“In order to concentrate our investments and resources in our highest growth areas of security and cloud computing, and to sustain our profitability targets during this challenging macroeconomic environment, Akamai has implemented a reduction of a little less than 3% of its workforce across the globe. We are not providing geographic-nor organisation-specific details of the workforce reduction, but can confirm that less than 3% of our workforce globally was impacted,” read a statement by the company, reported Channel Futures.

During the first quarter, Akamai reported a restructuring charge amounting to $45 million, primarily attributed to severance expenses associated with the layoffs. Additionally, the company is incurring facility-related charges as it reduces its real estate footprint as part of its flexible workspace strategy.

Joining the list of companies in the channel making workforce reductions, Akamai has announced layoffs, contributing to the significant number of job cuts witnessed since the beginning of the year. Dropbox, Red Hat, CDW, and F5 are among the other recent companies implementing layoffs.

In terms of financial performance, Akamai reported revenue of $916 million for the first quarter, marking a 1% rise compared to the same period last year. However, the company's profit declined by 27% to $97 million.

“Akamai had a strong start to 2023, with both revenue and earnings above our expectations. We reached a significant milestone during the first quarter when, for the first time in Akamai’s 25-year history, security became our largest revenue stream. Looking ahead, we remain committed to driving efficiency and profitability as we focus investment in areas with the strongest potential for future growth,” said Tom Leighton, Akamai’s CEO.

In a recent development, Akamai revealed its acquisition of Neosec, a data and behavioural analytics-based API detection and response platform. This strategic move aims to enhance API security for Akamai, with Neosec's specialised solution augmenting the company's existing application and API security portfolio.

The addition of Neosec's technology provides Akamai with expanded visibility and strengthened defence against the evolving API threat landscape.