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Cybersecurity firm CrowdStrike Holdings Inc. has announced a layoff of approximately 500 employees, representing 5% of its global workforce. The decision is part of a strategic initiative aimed at enhancing operational efficiency and achieving $10 billion in annual recurring revenue by January 2026. The company anticipates charges related to the layoffs will range between $36 million and $53 million, primarily covering severance packages, benefits, and stock-based compensation, with the majority of costs expected to be recorded in the second fiscal quarter.
CrowdStrike CEO George Kurtz attributed the workforce reduction to internal efficiency gains driven by the growing use of artificial intelligence and the pursuit of multibillion-dollar opportunities in new market segments. He emphasized that AI is accelerating product development, improving go-to-market strategies, and driving operational efficiency across various departments. The company stated the layoffs will "evolve its operations to yield greater efficiencies" as it scales up toward long-term growth targets and that "AI flattens our hiring curve".
Despite the job cuts, CrowdStrike intends to continue hiring in key strategic areas, particularly in customer-facing and product engineering roles. CrowdStrike reaffirmed its financial guidance for fiscal year 2026, projecting revenue between $4.74 billion and $4.81 billion with adjusted earnings per share of $3.33 to $3.45. The company sees growing opportunities in areas such as next-generation security information and event management, identity protection, cloud security, and exposure management, all of which are central to its Falcon platform strategy.
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CrowdStrike CEO George Kurtz attributed the workforce reduction to internal efficiency gains driven by the growing use of artificial intelligence and the pursuit of multibillion-dollar opportunities in new market segments. He emphasized that AI is accelerating product development, improving go-to-market strategies, and driving operational efficiency across various departments. The company stated the layoffs will "evolve its operations to yield greater efficiencies" as it scales up toward long-term growth targets and that "AI flattens our hiring curve".
Despite the job cuts, CrowdStrike intends to continue hiring in key strategic areas, particularly in customer-facing and product engineering roles. CrowdStrike reaffirmed its financial guidance for fiscal year 2026, projecting revenue between $4.74 billion and $4.81 billion with adjusted earnings per share of $3.33 to $3.45. The company sees growing opportunities in areas such as next-generation security information and event management, identity protection, cloud security, and exposure management, all of which are central to its Falcon platform strategy.
ImgSrc: d15shllkswkct0.
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References :
- aboutdfir.com: CrowdStrike lays off 500 in latest example of AI costing people their jobs Cybersecurity company CrowdStrike Holdings Inc. is cutting 500 jobs, or about 5% of its workforce, as it responds to both the security threat posed by artificial intelligence and the growing use of AI to move faster and operate more efficiently.
- cyberscoop.com: CEO George Kurtz said the decision to cut about 500 jobs was driven by internal efficiency gains from AI and multibillion-dollar opportunities in new market segments.
- SiliconANGLE: Cybersecurity firm CrowdStrike Holdings Inc. today announced the layoff of about 500 employees, accounting for 5% of its global workforce. The company said it’s part of a strategic initiative to enhance operational efficiency and focus on achieving $10 billion in annual recurring revenue by January 2026.
- techcrunch.com: The cybersecurity company said it will lay off 5% of its global workforce.
Classification:
- HashTags: #CrowdStrike #Layoffs #AI
- Company: CrowdStrike
- Target: CrowdStrike employees
- Feature: AI Efficiency
- Type: News
- Severity: Medium