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

Varonis laid off 5% of its workforce, approximately 120 employees, due to a sharp drop in renewal rates for its on-premise subscription business, particularly impacting its federal vertical. The company’s stock price plummeted 48.7% following the announcement, reflecting investor concerns about the unexpected downturn in renewals and the company’s strategy for the federal market. Varonis is also facing additional budgetary scrutiny from customers and is revising its guidance conservatively, anticipating continued variability in on-prem renewal rates.