“AI flattens our hiring curve”: CrowdStrike CEO justifies 500 layoffs as strategic shift
George Kurtz says layoffs are necessary to scale efficiently and lead in AI-driven cybersecurity.
CrowdStrike, one of the world’s most valuable cybersecurity firms, announced Wednesday that it is cutting approximately 500 jobs—about 5% of its global workforce—as part of what CEO George Kurtz described in a letter to staff as a necessary step to “evolve how we operate.”
The layoffs, revealed in a filing to the U.S. Securities and Exchange Commission, are part of a broad operational realignment aimed at “scaling with focus and discipline,” according to the internal memo. The company will continue to hire in product engineering and customer-facing roles, Kurtz said, but “we are reducing roles in some areas of the business.”
The move reflects growing pressure on tech companies to balance headcount growth with automation and efficiency, particularly as artificial intelligence becomes more deeply embedded in enterprise software. “AI flattens our hiring curve, and helps us innovate from idea to product faster,” Kurtz wrote. “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.”
CrowdStrike is positioning this restructuring not as a contraction, but as a recalibration for a more AI-driven future. “We’re operating in a market and technology inflection point, with AI reshaping every industry, accelerating threats, and evolving customer needs,” Kurtz wrote. “To lead at scale… we are evolving how we operate.”
Affected employees will be contacted within days, and CrowdStrike said it will provide severance, continued health benefits, and access to career support. “To those leaving CrowdStrike: thank you. We’re grateful for your contributions to our mission,” the letter read.
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The company did not specify which departments or regions will be affected. CrowdStrike employs more than 10,000 people globally and has expanded aggressively in Israel, where it has acquired five companies since 2020, including Adaptive Shield, Flow Security, and Bionic. It remains unclear whether Israeli teams will be included in the cuts.
Despite the reductions, CrowdStrike reaffirmed its financial outlook. The company expects full-year 2026 revenue between $4.74 billion and $4.81 billion, and adjusted earnings per share of $3.33 to $3.45. It estimates charges related to the layoffs will total between $36 million and $53 million, with $7 million to be recognized in the first quarter ended April 30.
Kurtz’s message, while framed with empathy, conveyed a sense of urgency. “These decisions were made with care and guided by a clear view of where we need to go,” he wrote. “We’re building on what works, simplifying execution, and doubling down on our highest-impact opportunities.”
Though acknowledging the human toll of the decision, Kurtz remained optimistic. “Our responsibility is aligning our mission with customer, market, and business needs. I’ve never been more optimistic about our future as I am right now,” he wrote. “In an AI-accelerated society, the world needs CrowdStrike more than ever.”
