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The company is also navigating significant economic uncertainty related to the Trump administration's April announcement of a new 10% baseline tariff on all imports as well as additional, country-specific taxes on goods from a host of other countries.
CrowdStrike has announced it will lay off 500 employees—about 5% of its nearly 10,000-strong workforce—as it streamlines operations and leans into artificial intelligence (AI) to boost efficiency. CEO George Kurtz said AI is enabling faster innovation and operational efficiency, reducing the need for aggressive hiring. The layoffs mark the second-largest workforce cut in the cybersecurity sector since 2020.
Despite the job cuts, CrowdStrike reaffirmed its financial guidance and said the layoffs won’t impact key areas like product development and customer engagement. The company plans to continue “prudent hiring,” primarily in engineering and customer-facing roles, as it works toward a $10 billion annual recurring revenue target.
The restructuring will cost between $36 million and $53 million, covering severance, stock-based compensation, and other transition expenses. The move comes amid broader challenges, including a costly software glitch in July 2024 that impacted 8.5 million systems and resulted in $60 million in expenses, as well as ongoing economic uncertainty driven by new U.S. tariffs.
CrowdStrike, based in Austin, Texas, is a leading name in endpoint security. Of the company’s workforce, 50% are in engineering, 40% in sales, and 10% in operations and HR. About 60% of its employees are U.S.-based, with others spread across India, the UK, Australia, and Europe.
Kurtz emphasized support for affected employees, including severance, continued health benefits, and access to unvested stock. Offices were closed temporarily following the announcement. While the layoffs are a difficult step, Kurtz said they are necessary to align with changing market dynamics and to ensure CrowdStrike’s long-term leadership in an AI-driven world.
CrowdStrike has announced it will lay off 500 employees—about 5% of its nearly 10,000-strong workforce—as it streamlines operations and leans into artificial intelligence (AI) to boost efficiency. CEO George Kurtz said AI is enabling faster innovation and operational efficiency, reducing the need for aggressive hiring. The layoffs mark the second-largest workforce cut in the cybersecurity sector since 2020.
Despite the job cuts, CrowdStrike reaffirmed its financial guidance and said the layoffs won’t impact key areas like product development and customer engagement. The company plans to continue “prudent hiring,” primarily in engineering and customer-facing roles, as it works toward a $10 billion annual recurring revenue target.
The restructuring will cost between $36 million and $53 million, covering severance, stock-based compensation, and other transition expenses. The move comes amid broader challenges, including a costly software glitch in July 2024 that impacted 8.5 million systems and resulted in $60 million in expenses, as well as ongoing economic uncertainty driven by new U.S. tariffs.
CrowdStrike, based in Austin, Texas, is a leading name in endpoint security. Of the company’s workforce, 50% are in engineering, 40% in sales, and 10% in operations and HR. About 60% of its employees are U.S.-based, with others spread across India, the UK, Australia, and Europe.
Kurtz emphasized support for affected employees, including severance, continued health benefits, and access to unvested stock. Offices were closed temporarily following the announcement. While the layoffs are a difficult step, Kurtz said they are necessary to align with changing market dynamics and to ensure CrowdStrike’s long-term leadership in an AI-driven world.
The company is also dealing with economic uncertainty following the Trump administration’s April announcement of a new 10% base tariff on all imports, along with extra country-specific taxes on goods from several nations. While those additional taxes were paused for 90 days, the baseline tariff is still in effect—something industry leaders say has contributed to slower spending since March.
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