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class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p> <main id=\"main\" role=\"main\" tabindex=\"-1\"> <\/p>\n<div class=\"ad ad--top ad--top-mobile\">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<section id=\"stickybar\" class=\"stickybar stickybar--event js-stickybar\">\n<div class=\"stickybar__details\" readability=\"4.9180327868852\">\n<div class=\"stickybar__info js-sticky-bar-content\" readability=\"32\">\n<p>Voting is open for the 2025 CyberScoop 50 awards!<\/p>\n<\/div>\n<p> <a class=\"stickybar__link button button-tertiary\" href=\"https:\/\/cyberscoop.com\/cyberscoop50\/\">Click here!<\/a> <\/div>\n<p> <button class=\"stickybar__close js-stickybar-close\" aria-controls=\"stickybar\"> <svg class=\"icon icon--close\" width=\"21\" height=\"22\" viewBox=\"0 0 21 22\" fill=\"none\"><path d=\"m.822.518-.805.805L9.695 11 .017 20.678l.805.805 9.678-9.678 9.677 9.678.806-.805L11.305 11l9.678-9.677-.806-.805-9.677 9.677L.822.518Z\" fill=\"currentColor\" \/><\/svg> <span class=\"visually-hidden\">Close<\/span> <\/button> <\/section>\n<article class=\"single-article content\">\n<div class=\"single-article__container js-single-article-content\">\n<header class=\"single-article__header \" readability=\"25.520096463023\">\n<div class=\"single-article__header-content\" readability=\"34.065420560748\">\n<ul class=\"single-article__eyebrow\">\n<li class=\"single-article__category\"> <a class=\"single-article__category-link\" href=\"https:\/\/cyberscoop.com\/crowdstrike-layoffs-5-percent-george-kurtz\/\"> <span>Cybersecurity<\/span> <\/a> <\/li>\n<\/ul>\n<p> 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. <\/p>\n<p>  <br \/>\n<audio id=\"audio-player\" src=\"https:\/\/wp-tts-cdn.api.scpnewsgrp.com\/cyberscoop\/84438\/english.openai.mp3\"><\/audio> <\/p>\n<div readability=\"11\">\n<div>\n<p>Listen to this article<\/p>\n<p>  <\/p>\n<p>0:00<\/p>\n<\/p><\/div>\n<p>  <\/p>\n<p> <span id=\"tts-tooltip\">Learn more.<\/span> <span> This feature uses an automated voice, which may result in occasional errors in pronunciation, tone, or sentiment. <\/span> <\/p>\n<\/div>\n<p>  <\/div>\n<div class=\"single-article__cover-wrap\">\n<figure class=\"single-article__cover\"> <img data-recalc-dims=\"1\" fetchpriority=\"high\" width=\"640\" height=\"381\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2025\/05\/crowdstrike-cuts-5-of-workforce-after-revenue-jumped-29-last-year.jpg?resize=640%2C381&ssl=1\" class=\"single-article__cover-image wp-post-image\" alt decoding=\"async\" fetchpriority=\"high\" srcset=\"https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/05\/crowdstrike-cuts-5-of-workforce-after-revenue-jumped-29-last-year-2.jpg 1920w, 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https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/05\/crowdstrike-cuts-5-of-workforce-after-revenue-jumped-29-last-year-2.jpg?resize=567,337 567w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/05\/crowdstrike-cuts-5-of-workforce-after-revenue-jumped-29-last-year-2.jpg?resize=1135,675 1135w, https:\/\/ddi.mohflo.net\/wp-content\/uploads\/2025\/05\/crowdstrike-cuts-5-of-workforce-after-revenue-jumped-29-last-year-2.jpg?resize=1417,843 1417w\" sizes=\"(max-width: 1135px) 100vw, 1135px\"><figcaption> This photograph shows screens displaying the logo of “CrowdStrike” cybersecurity technology company in Paris on July 19, 2024, amid massive global IT outage. (Photo by Stefano RELLANDINI \/ AFP) <\/figcaption><\/figure>\n<\/p><\/div>\n<\/header>\n<div class=\"single-article__content\">\n<div class=\"single-article__content-inner has-drop-cap\"> <html readability=\"66.318021201413\"><body readability=\"132.99046165586\"><\/p>\n<p>CrowdStrike is cutting 5% of its workforce, about 500 positions, telling its staff that it\u2019s shifting resources and realigning its operating model for growth in new market segments, according to a Wednesday <a href=\"https:\/\/ir.crowdstrike.com\/static-files\/355578e9-a500-4a76-b6b2-9d61a92a5a95\">filing with the Securities and Exchange Commission<\/a>.<\/p>\n<p>The company is slashing headcount following a year of significant growth in a strong market. CrowdStrike\u2019s revenue jumped 29% year-over-year to $3.95 billion in <a href=\"https:\/\/ir.crowdstrike.com\/static-files\/26d52307-1e24-44b7-bbc9-498b534480e2\">fiscal year 2025<\/a>, which ended Jan. 31. Yet, the company also reported a net loss of $19.3 million in FY25 after reporting net income of $89.3 million the previous year.<\/p>\n<p>CrowdStrike\u2019s growing use of artificial intelligence for internal operations was a factor behind the decision to cut staff in certain roles, according to CEO George Kurtz. \u201cAI flattens our hiring curve, and helps us innovate from idea to product faster,\u201d he said in a letter to employees. \u201cIt 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.\u201d<\/p>\n<p>The company plans to continue hiring customer-facing and product engineering roles, but layoffs in other areas of the business suggests AI\u2019s ability to automate some tasks and boost productivity has made some roles redundant.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Industry analysts question the extent to which CrowdStrike needed to or chose to point to AI as a factor leading to layoffs.<\/p>\n<p>\u201cWe have to be careful that AI isn\u2019t being used as an excuse for some area of the business that is underperforming,\u201d said Neil MacDonald, a vice president and analyst at Gartner. <\/p>\n<p>\u201cAI tools are used to make a given employee more productive, therefore you don\u2019t need as many people,\u201d MacDonald said. \u201cBut if you\u2019re growing, what it means is you don\u2019t have to hire as many [people], but it doesn\u2019t necessarily mean you have to lay people off.\u201d<\/p>\n<p>CrowdStrike is the second-largest provider of endpoint protection, a market segment that drives the bulk of its revenue. Its market share in that segment grew from 20.3% in 2023 to 21.3% in 2024, according to Gartner.<\/p>\n<p>Jeff Pollard, VP and principal analyst at Forrester, said Kurtz\u2019s mention of AI likely came from some AI-related efficiency gains, but noted there\u2019s also an industrywide trend at play. <\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>\u201cSome amount of AI-washing is now prevalent in every one of these announcements and this is no exception,\u201d he said. \u201cIn much the same way that \u2018we take privacy and security very seriously\u2019 can be found in every breach disclosure, so too can \u2018AI productivity\u2019 in workforce reduction announcements.\u201d<\/p>\n<p>Unfortunately, Pollard said, CrowdStrike\u2019s \u201cobligatory mention of AI\u201d will be widely emulated by other cybersecurity vendors. <\/p>\n<p>Business leaders across multiple industries say they are looking to use AI to cut their workforce by at least 10% and up to 30%, including customer service, creative and administrative roles, according to Zeus Kerravala, principal analyst at ZK Research. <\/p>\n<p>\u201cThe layoffs are part of a broader set of efficiencies and I\u2019m fully expecting to see more. This was only 5% and I think it\u2019s more indicative of the state of AI rather than the state of cyber,\u201d Kerravala said. <\/p>\n<p>\u201cThe layoffs should be viewed more as the evolution of AI and the changing nature of cyber rather than issues at CrowdStrike,\u201d he added.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>Kurtz said the decision to cut staff was predicated and driven by other factors as well. This includes, he said, a push to consolidate more customers on CrowdStrike\u2019s Falcon platform, and multibillion-dollar opportunities in new market segments, such as tools for next generation security information and event management, identity, cloud and exposure management.<\/p>\n<p>The company\u2019s goals beyond its core business in endpoint protection pose an important question in the face of these layoffs, according to MacDonald. <\/p>\n<p>CrowdStrike is growing, gaining market share in cloud protection and SIEM last year, he said, but the company is still a relatively small player in those areas, and perhaps it\u2019s not growing as quickly as it hoped in newer market segments.<\/p>\n<p>\u201cThe cyber industry is changing with platforms starting to take hold over point products,\u201d Kerravala said. \u201cCrowdStrike will likely have to cut heads as they bring in talent around how to build and monetize platforms.\u201d<\/p>\n<p>The layoffs also come nearly 10 months after a <a href=\"https:\/\/cyberscoop.com\/crowdstrike-falcon-flaw-microsoft-outage-flights-grounded-windows\/\">faulty CrowdStrike Falcon security software update<\/a> caused millions of Microsoft Windows systems to malfunction. That mistake caused major issues for businesses worldwide, and company executives have repeatedly said they need to regain the trust of customers.<\/p>\n<div class=\"ad ad--inline_1 \">\n<div class=\"ad__inner\"> <span class=\"screen-reader-text\">Advertisement<\/span> <\/div>\n<\/div>\n<p>CrowdStrike expects to incur up to $53 million in charges related to the layoffs, including severance payments, benefits and stock-based compensation.<\/p>\n<p>\u201cI know this is difficult news and it affects all of us. These decisions were made with care and guided by a clear view of where we need to go,\u201d Kurtz said.<\/p>\n<p>\u201cAs we evolve, we are laser-focused on transforming cybersecurity,\u201d he said. \u201cWe stop breaches. This mission defines our purpose, unites our team and keeps us focused on what matters most: protecting our customers.\u201d<\/p>\n<p><\/body> <\/p>\n<footer class=\"single-article__footer\" readability=\"4.2410071942446\">\n<div class=\"author-card\" readability=\"14\">\n<div class=\"author-card__avatar\">\n<figure class=\"author-card__image-wrap\"> <img data-recalc-dims=\"1\" decoding=\"async\" class=\"author-card__image\" src=\"https:\/\/i0.wp.com\/ddi.mohflo.net\/wp-content\/uploads\/2025\/05\/crowdstrike-cuts-5-of-workforce-after-revenue-jumped-29-last-year-1.jpg?w=640&ssl=1\" alt=\"Matt Kapko\"> <\/figure>\n<\/p><\/div>\n<p><h4 class=\"author-card__name\">Written by Matt Kapko<\/h4>\n<p> Matt Kapko is a reporter at CyberScoop. His beat includes cybercrime, ransomware, software defects and vulnerability (mis)management. The lifelong Californian started his journalism career in 2001 with previous stops at Cybersecurity Dive, CIO, SDxCentral and RCR Wireless News. 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{"id":7619,"date":"2025-05-07T15:28:42","date_gmt":"2025-05-07T20:28:42","guid":{"rendered":"https:\/\/cyberscoop.com\/?p=84438"},"modified":"2025-05-07T15:28:42","modified_gmt":"2025-05-07T20:28:42","slug":"crowdstrike-cuts-5-of-workforce-after-revenue-jumped-29-last-year","status":"publish","type":"post","link":"https:\/\/ddi.mohflo.net\/index.php\/2025\/05\/07\/crowdstrike-cuts-5-of-workforce-after-revenue-jumped-29-last-year\/","title":{"rendered":"CrowdStrike cuts 5% of workforce after revenue jumped 29% last year"},"content":{"rendered":"