May 27, 2024

Tough Times for VPNs? ExpressVPN Parent Company Lays Off 30% of Staff

The parent company to ExpressVPN, Private Internet Access, and CyberGhost VPN, appears to have laid off about 30% of its staff amid a corporate reorganization.

ExpressVPN CTO Dan Gericke today posted(Opens in a new window) on LinkedIn about leaving Kape Technologies, saying the company had “decided to retrench” about 30% of its global workforce. 

In recent days, several other Kape employees also posted on LinkedIn about being laid off. About a month ago, ExpressVPN co-founder Peter Burchhardt announced(Opens in a new window) he had left Kape, too. 

In an email, Kape confirmed the layoffs, but the company only offered a vague explanation for the job cuts. “To ensure we are set up in the long term to continue providing our customers with the best protection in the industry, we recently conducted an organizational restructuring, including making the difficult decision to let some employees go,” a Kape spokesperson said. “This decision was not taken lightly, and the business is actively engaging with those who have been impacted to help ease the transition.”

The job cuts could stir up concerns that Kape is cutting back on its various VPN services, which have received positive reviews. But the company told PCMag that its team still numbers in the hundreds. “We’re already hard at work delivering the next generation of technology, innovation, and advanced protection for our users and raising the bar for privacy and security across the digital landscape,” Kape added.

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Still, PCMag learned of the layoffs via an email from someone who claims to work at ExpressVPN who expressed concern that the VPN provider’s performance will suffer as a result. According to the email, Kape laid off 200 staffers in Hong Kong, Singapore, and London, including engineers and quality assurance specialists. 

Kape Technologies bought ExpressVPN in 2021. Israeli billonaire Teddy Sagi then formally acquired(Opens in a new window) Kape and took it(Opens in a new window) private in May through a company called Unikmind Holdings. If you know more about the situation at Kape, let us know.

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