CrowdStrike Lays Off 500 Employees Amid Strategic Shift Toward AI; Here's What CEO Said

Cybersecurity giant CrowdStrike announced on Wednesday that it will cut approximately 500 jobs, representing about 5 per cent of its global workforce, as part of a major operational restructuring. The decision, revealed in a filing with the US Securities and Exchange Commission, is aimed at realigning the company’s structure to better support its growth strategy and capitalize on advances in artificial intelligence.

In a memo to employees, CEO George Kurtz described the layoffs as a “necessary step” to evolve the company’s operations and improve focus and efficiency. While highlighting that CrowdStrike will continue to hire for roles in product engineering and customer-facing positions, Kurtz acknowledged that certain parts of the business would be downsized.

Kurtz wrote that their goal is to scale with focus and discipline. “AI flattens our hiring curve, and helps us innovate from idea to product faster. It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office. AI is a force multiplier throughout the business,” Kurtz said.

The company, which employs over 10,000 people globally, has grown rapidly in recent years, including multiple acquisitions in Israel. While it remains unclear which teams or regions will be most affected by the layoffs, CrowdStrike confirmed that impacted employees would be informed in the coming days and offered severance packages, extended health benefits, and career transition support.

Also Read: Meta Trims Workforce In Reality Labs, Refocuses Oculus Studios On Mixed Reality Development

Layoffs Across The Tech Sector

CrowdStrike stressed that the move reflects a broader transformation in the tech industry, where companies are increasingly leveraging AI to enhance productivity and reduce the need for headcount expansion. 

Despite the workforce reduction, CrowdStrike reaffirmed its financial guidance for fiscal 2026, projecting revenue between $4.74 billion and $4.81 billion, with adjusted earnings per share ranging from $3.33 to $3.45. The company expects to incur layoff-related charges of $36 million to $53 million, with $7 million to be accounted for in the first fiscal quarter, which ended April 30.

“These decisions were made with care and guided by a clear view of where we need to go. We’re building on what works, simplifying execution, and doubling down on our highest-impact opportunities. Our responsibility is aligning our mission with the customer, market, and business needs. I’ve never been more optimistic about our future as I am right now. In an AI-accelerated society, the world needs CrowdStrike more than ever,” Kurtz concluded.

business