Everfox Cuts 50 Jobs in Government Cybersecurity Restructuring

Everfox, the government cybersecurity contractor formerly known as Forcepoint Federal, laid off 50 employees on November 20, 2025, representing approximately 5% of its total workforce. The workforce reduction affects the company's operations as it navigates shifting federal contracting priorities and increased competition in the government cybersecurity market. The layoffs come as Everfox continues its strategic transformation following its separation from Forcepoint's commercial division in 2021.

Context of the Decision

The layoffs reflect broader challenges facing government cybersecurity contractors as federal agencies reassess their security spending priorities. Everfox has faced increased pressure to streamline operations while competing for fewer large-scale contracts in an increasingly crowded marketplace. The company's decision to reduce its workforce comes amid budget constraints affecting several government agencies and a shift toward more specialized, AI-driven security solutions.

Industry sources indicate that Everfox has been working to optimize its cost structure while maintaining its core capabilities in data loss prevention and insider threat detection for government clients. The workforce reduction appears designed to eliminate redundancies and focus resources on high-priority government contracts, particularly those involving classified environments and critical infrastructure protection.

Impact on Operations

The layoffs primarily affected administrative and support functions, with some reductions in engineering roles focused on legacy products. Everfox's main operations centers in Herndon, Virginia, and Austin, Texas, experienced the majority of the job cuts. The company has reportedly preserved most positions directly tied to active government contracts and maintained its core research and development teams.

Customer-facing roles and positions supporting classified government work remained largely intact, suggesting Everfox prioritized maintaining service levels for existing federal clients. The company's specialized teams working on zero-trust architecture and cloud security solutions for government agencies were minimally affected by the restructuring.

Company Financial Background

Everfox was carved out from Forcepoint's federal division in 2021 when Francisco Partners acquired the government-focused cybersecurity business. The company has since operated as an independent entity serving federal, state, and local government agencies with specialized security solutions. While privately held financial details remain limited, the company has faced revenue pressures as government clients increasingly demand integrated security platforms rather than point solutions.

The cybersecurity firm has invested heavily in developing next-generation data protection technologies specifically designed for government environments. However, longer sales cycles typical in government contracting and increased competition from larger defense contractors have created financial headwinds for mid-sized players like Everfox.

Industry Outlook

The government cybersecurity sector has experienced significant consolidation and workforce reduction across multiple companies in 2025. Similar firms have struggled with the dual challenge of maintaining security clearances for specialized personnel while adapting to evolving federal cybersecurity requirements. The Biden administration's emphasis on zero-trust architecture and supply chain security has created opportunities, but also increased compliance costs for contractors.

Everfox's workforce reduction mirrors similar moves by other government-focused cybersecurity companies, including recent layoffs at smaller defense contractors. The trend reflects a broader shift in federal procurement toward fewer, larger contracts that favor established prime contractors over specialized niche players.

Conclusion

Everfox's decision to reduce its workforce by 5% signals the company's commitment to maintaining financial stability while positioning itself for future growth in the competitive government cybersecurity market. The strategic restructuring aims to preserve the company's core capabilities while eliminating operational inefficiencies that have pressured margins.

Moving forward, Everfox will likely focus on securing larger federal contracts and expanding its presence in high-growth areas such as cloud security for government agencies. The company's ability to maintain its specialized expertise while operating with a leaner structure will determine its success in an increasingly challenging market environment. The layoffs, while difficult for affected employees, may position Everfox to compete more effectively for the next generation of government cybersecurity contracts.