SureID Layoffs Continue After Losing Contract with U.S. Navy


SureID Confirms Layoffs of 297 Employees

Security technology company SureID, Inc. has confirmed that it is laying off 97 employees, in addition to the 200 employees whose layoffs were already announced in May. The layoffs are expected to continue through July.

That means the total number of jobs being cut will reach almost 300 in just three months.

The Hillsboro, Oregon-based SureID primarily sells its identity authentication software to the military and large companies. The corporation says that employees have to be laid off because of an “unforeseen change in business needs.”

The layoffs are likely at least partly a result of losing a large security identification technology contract with the U.S. Navy in May.


Losing Contract with U.S. Navy Led to Job Cuts

The U.S. Navy was using SureID’s technology to authenticate the entry of authorized personnel on naval bases across the country. The company was generating approximately 70% of its revenue from its arrangement with the U.S. Navy. Having lost its biggest client, SureID expects a significant decline in profits.

Back in 2015, SureID was on a tear, as the company built its reputation as a trusted security services company in a short time span. In less than three years, the company grew its workforce by 138%. However, the company’s image got tarnished when the U.S. Navy found a flaw in SureID’s identification system.

The Navy’s decision to stop using the SureID technology was made after federal inspectors found a security breach in the company’s system. Inspectors found that many unauthorized individuals, including convicted felons, managed to enter naval installations. The unauthorized access went unnoticed for months before the criminal records of the individuals were discovered.

SureID was managing the credentials of nearly 170,000 personnel at 66 U.S. Navy bases. Following the discovery of the security breaches, the Navy parted ways with SureID.

The employees who lost their jobs include most of the company’s top-level executives. SureID founder and CEO Steve Larson was let go last month and was replaced by new CEO James Robell.

SureID used to have about 550 employees just two years ago. The latest round of layoffs has cut its workforce by more than half. The mass layoffs are expected to hurt the tech scene in Oregon, where SureID occupied the status of an up-and-coming tech company.



SureID announces more layoffs, bringing total to nearly 300,” BeavertonValleyTimes, June 27, 2017.

SureID says it will lay off 97 more, bringing total cuts near 300,” The Oregonian, June 26, 2017.