Rapid7 cuts 300 jobs amid shrinking revenue and AI transition

Boston-based cybersecurity firm Rapid7 has announced it is cutting approximately 300 jobs, representing 12 percent of its workforce. The layoffs were disclosed alongside the company’s second-quarter earnings report.

The workforce reduction follows a period of shrinking revenue and profits. Rapid7 has forecasted that 2026 sales could decline to as low as $837 million, down from $860 million last year, as customers delay transitioning to newer cybersecurity offerings. The company noted that the job cuts will result in costs between $11 million and $12 million, primarily for severance.

Chief Executive Wael Mohamed, who assumed the role in June, is currently overseeing an executive restructuring and an effort to integrate more artificial intelligence into the company’s software. This shift comes as the cybersecurity industry faces intense competition from AI-driven firms and larger rivals like CrowdStrike and Palo Alto Networks, both of which have seen significant stock growth over the past year.