Rapid7, a cybersecurity company, is cutting about 12% of its workforce as it shifts towards an AI-first cybersecurity platform and increases investment in AI-powered security operations.
The workforce reduction was announced during the second quarter of 2026, with about 12% of employees informed that their positions would be affected. The company expects to incur restructuring charges of $10 million to $11 million, mainly related to severance and other employee costs.
Rapid7 said the restructuring is aimed at streamlining its organisational structure and aligning resources with its Core Platform Solutions.
“Rapid7 is a good company ready to be great, but getting there requires clear choices, strong execution, and the discipline to focus on what matters most,” CEO Wael Mohamed said, as reported by Pulse2.
“The steps we’re taking align our resources and investment behind our core platform and the AI foundation that connects it, giving us more capacity to invest, innovate, and serve our customers well,” Wael added.
Rapid7 builds new leadership team
Rapid7 has also established a new leadership team to support its AI-first strategy. The team includes CFO Rafe Brown, Chief Commercial Officer Allan Peters and Chief Product and Technology Officer Dejan Deklich.
Deklich will be responsible for developing the company’s AI-first platform, highlighting the growing role of artificial intelligence in Rapid7’s product and technology strategy.
The company has also integrated OpenAI’s Trusted Access for Cyber program into its operations, using models including GPT-5.5 in its Agentic SOC workflows.
Rapid7 said the technology has accelerated telemetry triage and reduced false-positive queue times by 25%.
The company has also joined Anthropic’s Project Glasswing. The collaboration is focused on defensive engineering, deep code reviews and automated vulnerability patching.
Rapid7 reports $210.9 million quarterly revenue
The restructuring comes as Rapid7 reported quarterly revenue of $210.9 million and annual recurring revenue (ARR) of $824 million. Both figures were down modestly year over year.
The company generated $31.9 million in free cash flow during the quarter.
As of the end of June, Rapid7 had $702.6 million in cash, cash equivalents and government securities.
The company said the restructuring will allow it to concentrate resources and investment on its core platform and the AI foundation connecting its products.
The shift reflects the growing use of artificial intelligence across the cybersecurity industry, where companies are investing in AI-powered tools to improve threat detection, security operations and vulnerability management.
For Rapid7, the strategy is centered on building an AI-first platform while streamlining its organisation and directing resources towards its core products.
