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What founders can learn from Anjuna’s layoffs and recovery

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Why This Matters

Anjuna Security’s experience highlights the importance of resilience and compassionate leadership in navigating market downturns. For tech companies, maintaining a strong internal culture and transparent communication can be crucial for recovery and long-term success, especially after layoffs. This case underscores that caring for employees and fostering trust can help startups rebound more effectively in challenging times.

Key Takeaways

In 2021, Anjuna Security was growing fast, hiring aggressively, and chasing a market that seemed limitless. By the end of that year, the venture-backed cybersecurity company had scaled to around 75 employees, building out sales, customer success, and support teams in anticipation of continued hypergrowth.

Then 2022 hit.

As the market turned, enterprise clients became harder to land. Like many startups building at that time, Anjuna was overextended and underfunded. So the company was forced to make a difficult decision and laid off a portion of its staff, then conducted another round of layoffs months later.

Cutting costs was only part of the challenge. The harder question was how to rebound and keep the remaining team members motivated.

Ayal Yogev, the CEO and co-founder of Anjuna, joined Isabelle Johannessen on TechCrunch’s Build Mode to discuss how the company survived the volatile market by acting quickly, making cuts with compassion, and learning from early missteps.

One of the reasons Anjuna was able to endure two rounds of layoffs was that the company had already put in the time to build a strong internal culture, anchored in a simple idea. “We have only one word when it comes to culture, and that’s care,” Yogev said. “We care about our employees. We care about our customers.”

Rather than treating culture as a set of abstract values, the company focused on consistent behavior. Internally, that meant transparency and communicating clearly about what was happening and why. Externally, it meant supporting departing employees beyond severance, from sharing job opportunities through investor networks to ensuring continued access to benefits like healthcare.

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