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How Anjuna Survived Layoffs and Rebuilt Stronger After the 2022 Downturn

Founder Intelligence3 min read|By 100Xfounder|Published
How Anjuna Survived Layoffs and Rebuilt Stronger After the 2022 Downturn
Startup Intelligence

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Like many venture backed startups riding the post pandemic tech boom, the cybersecurity company was scaling aggressively. Hiring was in full swing, teams were expanding across s...

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Like many venture-backed startups riding the post-pandemic tech boom, the cybersecurity company was scaling aggressively. Hiring was in full swing, teams were expanding across sales and customer success, and expectations for growth seemed almost limitless.

By the end of the year, Anjuna had grown to around 75 employees — a sign of confidence in both its product and the market ahead.

Then everything changed.

When growth suddenly stops

In 2022, the broader tech market slowed down sharply. Enterprise customers became more cautious, deal cycles stretched longer, and new business was harder to close.

For Anjuna, this exposed a problem many startups faced at the time: it had scaled ahead of demand.

The company found itself overextended — with rising costs but slowing revenue growth. That forced leadership to make one of the hardest decisions any startup faces: layoffs.

Not once, but twice.

The real challenge wasn’t just cutting costs

Reducing expenses was necessary, but it wasn’t the hardest part.

The bigger challenge was what came next — how to stabilize the company and keep the remaining team motivated after such difficult decisions.

In a conversation on the Build Mode podcast, CEO Ayal Yogev explained that survival came down to acting quickly, communicating clearly, and leaning heavily on company culture.

A culture built on one word: care

Long before the downturn, Anjuna had defined its culture around a simple principle: care.

Not as a slogan, but as a way of operating.

Internally, that meant being transparent with employees — explaining what was happening, why decisions were being made, and what the future might look like.

Externally, it meant supporting employees even as they left the company.

Instead of treating layoffs as a transactional process, Anjuna tried to help affected employees transition by:

  • Connecting them with new job opportunities through investor networks
  • Offering continued access to benefits like healthcare
  • Providing direct, human communication rather than impersonal notices

These steps didn’t eliminate the pain, but they helped preserve trust.

Avoiding the mistakes most companies make

Layoffs often damage company culture — especially when handled poorly.

Common mistakes include:

  • Dragging out decisions, creating uncertainty
  • Avoiding direct communication
  • Treating employees like numbers instead of people

According to Yogev, Anjuna made a conscious effort to avoid these pitfalls.

Decisions were made quickly, conversations were handled directly, and leadership stayed visible throughout the process.

The second layoff tested everything

Even with the right intentions, a second round of layoffs made things harder.

Trust, once shaken, is difficult to rebuild. Morale can drop, and remaining employees may start questioning stability.

This is where culture played a critical role.

Instead of looking for someone to blame, the company focused on learning.

Yogev pointed out that blame-driven environments often lead to fear-based cultures, where employees avoid risks just to protect themselves — ultimately hurting innovation and growth.

Anjuna chose a different path: understand what went wrong and move forward.

Rebuilding with a more disciplined approach

Today, Anjuna is still growing — but with a very different mindset.

Instead of chasing rapid expansion, the company is focusing on sustainable growth.

Key changes include:

  • Hiring more carefully and only when needed
  • Aligning sales efforts closely with real market demand
  • Using AI tools to improve efficiency without overhiring

This reflects a broader shift happening across the startup ecosystem, where companies are moving away from “growth at all costs” toward more disciplined operations.

A lesson for startups in uncertain markets

Anjuna’s story is not unique — many startups went through similar struggles during the 2022 downturn.

What sets it apart is how the company handled the situation.

By acting quickly, communicating openly, and prioritizing people even during layoffs, Anjuna was able to navigate one of the toughest periods in the tech industry.

The takeaway is simple but powerful:

Growth can be planned.

Downturns cannot.

But how a company responds — that defines its future.

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