Rapid7 is cutting about 12 percent of its workforce, and the board signed the plan off three days before the quarter went out

Money & World

The Editorial Team · August 10, 2026

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Photo: Karl Byron / Pexels

What it changes

A restructuring filed under Item 2.05 has to carry a number, and the number here is the charge rather than the headcount. Rapid7 gives 12 percent and $10m to $11m, and it does not say how many people that is, which office they sit in, or which teams go. If you hold the stock, the sequence is the part worth keeping. The board approved this on Friday 7 August. The quarter went out on Monday 10 August with revenue down 1.5 percent year over year, at $210.9 million, and GAAP income from operations of $3.0 million. So the decision was taken against numbers the market had not seen yet, and the cost of it lands in the third and fourth quarters rather than in the one just reported. If you work there and outside the United States, the timetable is looser than the headline dates suggest: the filing says position eliminations in each country are subject to local law and consultation requirements, and that those may push the process past the end of the year.

Twelve percent. That is the share of its own workforce Rapid7 told the Securities and Exchange Commission on Monday it intends to cut.

The board approved the plan on Friday 7 August. The company reported its second quarter results on Monday 10 August, and filed the restructuring in the same document, under the item reserved for costs associated with exit or disposal activities. Both events sit in one filing, three days apart.

The order matters, and the filing makes it legible.

What the plan costs

Rapid7 estimates charges of approximately $10m to $11m. The filing says these are primarily cash charges, covering employee transition, notice periods and severance, employee benefits and what it calls related facilitation costs.

There are non-cash charges too, mostly from share awards vesting early, and the company does not expect those to be significant. The majority of the total falls in the third and fourth quarters. Execution, including the cash going out of the door, is expected to be substantially complete by the end of the fourth quarter.

That last date carries a qualification. Position eliminations in each country are subject to local law and consultation requirements, and the filing says those requirements may extend the process beyond the fourth quarter in some places. European and other non-American staff consultations do not run on an American calendar.

What the plan does not say

There is no headcount in the document. Twelve percent of what is not stated, no office or country is named, no function is identified, and no per-person severance figure appears.

The quarter it was decided against

The results released the same afternoon show annualised recurring revenue of $824m and total revenue of $210.9m, down 1.5 percent on the year. Product subscriptions brought in $205m. GAAP income from operations was $3.0m, against $28.9m on the company's own non-GAAP measure, and free cash flow was $31.9m.

Wael Mohamed, the chief executive, said in the release that customers "want us to go deeper in Detection and Response and Exposure Management, not wider."

The board had already decided. The market found out on Monday.

Rapid7 is cutting about 12 percent of its workforce, and the board signed the plan off three days before the quarter went out

What the plan costs

What the plan does not say

The quarter it was decided against

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