Cambridge-based technology company Akamai is laying off about 2.5 percent of its worldwide workforce as it continues to sharpen its focus on cloud computing and data security.
During the company’s third-quarter earnings call on Thursday, Akamai chief executive Tom Leighton said the job cuts are related to the company’s ongoing transformation. Born in 1998 to provide efficient delivery of large amounts of online data, Akamai today derives most of its revenue from providing cybersecurity services and cloud computing. Leighton announced further investments to sustain the strong growth in these segments, to be funded by cutting 2.5 percent of the company’s global workforce, which stood at 10,250 as of December 2023. If that figure is still accurate, that works out to about 256 lost jobs.
“This was a painful decision because it impacts our people whose innovation and drive have been an important part of our success,” said Leighton. An Akamai spokesman declined to provide the exact number of job cuts, where they would take place, or which departments would be affected. Akamai said it employs about 1,500 people in Massachusetts.
Akamai also announced third-quarter revenue of $1.005 billion, up 4 percent year-over-year, though net income of $58 million was down 64 percent from the previous year.
News of the Akamai job cuts came two days after troubled consumer robot maker iRobot said it would lay off 105 employees as part of an ongoing restructuring.
“Since the start of 2024, we have now reduced our global workforce by approximately 50 percent,” said iRobot chief executive Gary Cohen. “This transformation is essential to improve our performance and generate long-term shareholder value.”
IRobot, headquartered in Bedford, generated $193.4 million in revenue during the third quarter of 2024, up 4 percent from the previous year. Its net loss of 21 cents per share was much improved from the $2.86 per share loss in the same period last year.
IRobot has been battered by tough competition from rival robot makers such as Needham-based SharkNinja. The company was also damaged by a failed acquisition attempt by online giant Amazon, which was scuttled early this year after antitrust regulators in Europe and the US signaled their disapproval.
Hiawatha Bray can be reached at hiawatha.bray@globe.com. Follow him @GlobeTechLab.
