DigitalOcean is laying off dozens of people as part of a broader restructuring effort targeted at bolstering the cloud platform provider’s financial position in an extremely competitive environment.

"DigitalOcean recently announced a restructuring to better align its teams to its go-forward growth strategy,” the company noted in an emailed statement to SDxCentral. “As part of this restructuring, some roles were, unfortunately, eliminated. DigitalOcean continues to be a high-growth business with $275 million in [annual run rate] and more than 500,000 customers globally. Under this new organizational structure, we are positioned to accelerate profitable growth by continuing to serve developers and entrepreneurs around the world."

The company did not provide specifics on the number of jobs that will be cut, but reports indicated it could be up to 50 positions, which could be about 10% of its workforce. DigitalOcean has offices in New York City; Cambridge, Massachusetts; and Bangalore, India.

DigitalOcean was founded in 2012, and has raised more than $300 million in funding across 11 rounds, according to Crunchbase. It’s often lumped into the “others” category among cloud providers. That market is dominated by Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, with Alibaba Cloud, Oracle, and IBM most often cited as challengers in the space. DigitalOcean was lauded by Forbes as one of the top 100 private cloud companies in 2019.

The news comes six months after the firm revamped its executive team, and named a new CEO and CFO. Yancey Spruill replaced Mark Templeton, who left the CEO position due to “personal reasons.” Spruill was touted as having spent several years as an investment banker “focused on mergers and acquisitions.”

Bill Sorenson took over the CFO position having previously served as CFO at energy intelligent software provider Enernoc, which was sold to Enel Green Power North America for $250 million, and he served as CFO at data management and analytics company Qlik.

DigitalOcean early last year hired away Barry Cooks from VMware to be its CTO. Cooks had served as VP of research and development for cloud operations products at VMware.