CrowdStrike to lay off 500 employees amid major restructuring
The $110 billion cyber firm announces 5% global workforce reduction.
American cyber giant CrowdStrike will lay off 500 employees, about 5% of its global workforce, as part of a reorganization the company is undergoing, the company revealed in a filing to the U.S. Securities and Exchange Commission. The company noted that it will continue to hire strategic employees during this period.
“AI flattens our hiring curve”: CrowdStrike CEO justifies 500 layoffs as strategic shift
The company has acquired several companies in Israel and employs hundreds of employees in the country, and it is still unclear whether the layoffs will affect them. CrowdStrike is currently trading at a market value of about $110 billion.
The cybersecurity company will incur about $36 million to $53 million in charges related to the layoffs, of which about $7 million will be recognized in the first quarter ended April 30, it said in a regulatory filing.
The Austin, Texas-based company said the rest of the charges will be seen in the second quarter. The charges primarily consist of future cash expenditure related to severance payments, employee benefits and related costs.
CrowdStrike had 10,118 full-time employees as of January 31, according to its annual report. Cybersecurity remains a priority for businesses and governments at a time when high-profile hacking incidents have hit companies such as Microsoft, UnitedHealth Group and Walt Disney. Analysts have said CrowdStrike's prompt handling of the Windows outage last year, which disrupted internet services globally, helped the company maintain customer trust.
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CrowdStrike maintained its full-year 2026 revenue forecast to be between $4.74 billion and $4.81 billion and reaffirmed its annual adjusted profit per share estimate of $3.33 to $3.45. The company's quarterly forecast for first-quarter revenue was between $1.10 billion and $1.11 billion. It will release the financial results for its first quarter on June 3.
CrowdStrike has acquired five different companies in Israel, the most recent of which was Adaptive Shield in November last year for approximately $300 million. Additional acquisitions include the acquisition of Flow Security in 2024, Bionic in 2023, Reposify in 2022, and Primate Security in 2020.
Reuters contributed to this report.
