Cowbell Cyber cutting 12% workforce amid ‘prolonged softer market’
In response to a prolonged market downturn and rising fixed costs, SME-focussed insurtech Cowbell Cyber is undertaking a 12% reduction in its workforce—a decision the company describes as “extremely difficult” and a “last resort”.
Cowbell provides artificial intelligence-powered cyber insurance to small and medium enterprises (SMEs). The company’s CEO and founder Jack Kudale (pictured) announced the news stating that it was “an extremely difficult call to make and was a last resort, after considering all other options”.
“Although policyholder growth has been strong and the company is closing out on its largest quarter to date, a prolonged softer market cycle coupled with a rise in fixed costs necessitated us to carefully and realistically evaluate our organisational structure and cost base,” Kudale said in a ‘letter from the CEO’ explaining the situation.
“While we’ve made solid progress on reining in discretionary expenses across the organisation, more substantial action is needed to position the company to reach profitability within our target window,” he added.
The decision will impact 28 members of the staff.
“This is a tough day for all of us at Cowbell. I want to stress that there will be no disruption to our distribution, underwriting precision, claims handling, or policyholder experience,” Kudale said.
He continued: “We are offering comprehensive separation packages and outplacement assistance, commensurate with our size and scale, to the impacted employees to make the transition as smooth as possible. I deeply appreciate all the contributions they have made in our journey thus far and will continue to support and cheer them on in their next endeavours.
“Moving forward, Cowbell remains on the path to profitability. We are actively and successfully executing on our three-dimensional growth plan – widening our geographic footprint, focusing on upmarket opportunities, and building a presence in new markets. We are now well-positioned to be even more competitive and have the ability to capitalize on new market shifts.
“We will continue to partner with and serve our best-in-class industry partners to build an unmatched level of accessibility for our services. I’m proud of the work we do here every day, insuring small and mid-sized enterprises (SMEs) against evolving cyber threats, and I’m confident that as we execute efficiently, we will be more resilient than ever to future market cycles.”
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