CrowdStrike cuts 500 jobs, cites AI
But don’t worry, the CEO has ‘never been more optimistic’
CrowdStrike is cutting 500 jobs, representing 5% of its global workforce, citing AI as a factor in its decision.
The cybersecurity company, which attained notoriety last year after a faulty software update brought down millions of Windows devices around the globe, said that AI can accelerate innovation and streamline operations, reducing the need for certain roles.
“We’re operating in a market and technology inflection point, with AI reshaping every industry, accelerating threats, and evolving customer needs,” said CEO George Kurtz in a memo to staff, filed with the US SEC.
“To those leaving CrowdStrike: thank you. We’re grateful for your contributions to our mission.”
The company says the move is part of a strategic initiative to enhance operational efficiency and focus on long-term growth targets.
Despite the cuts, which will fall in the front and back office, CrowdStrike says it will continue hiring “primarily in customer-facing and product engineering roles”
In the short term, the job cuts are cost the company between $36 million and $53 million in charges for severance, benefits and compensation.
The company has recovered financially from the disastrous events of 2024. In March it reported quarterly revenues $1 billion, up 25% on the same quarter in 2024, with a loss of $92 million.
In a somewhat insensitive sign off, Kurtz’s memo concludes, “I’ve never been more optimistic about our future as I am right now. What I know, and what I believe the market knows, is that in an AI-accelerated society, the world needs CrowdStrike more than ever.”
CrowdStrike is hardly alone as a tech company enacting layoffs – Google, Meta and Intel announced swingeing cuts in recent weeks - but it is one of only a few to acknowledge AI as a factor.
Last month Duolingo said it is phasing out human contractors as it moves to be ‘AI first’; Klarna and Shopify recently made similar statements.
In January the World Economic Forum said that 41% of global companies are planning to replace jobs with AI.