Austin, May 8: CrowdStrike, a cybersecurity company based in Austin, Texas, has announced cutting 5% of its global workforce. The latest round of CrowdStrike layoffs, announced as part of a strategic plan, will affect 500 employees globally. The US-based company will reportedly hire more employees after these job cuts in various key areas by 2026. 

The CrowdStrike layoffs will cost the company USD 36 to USD 53 million, and out of this, USD 7 million is set to be reorganised in the first quarter of April 30. The employees affected by the layoffs will receive severance pay and outplacement assistance from CrowsStrike. Despite the layoffs, the cybersecurity company shared its plans to hire people at the end of 2026. CrowdStrike said it would continue to scale its business and meet the USD 10 billion goal for ending ARR. Google Layoffs Continue: Tech Giant Lays Off 200 Employees From Its Global Business Unit Working in Sales and Partnership.

The job cuts announced by CrowdStrike affecting 5% of the global workforce, around 500 staffers, are largely attributed to artificial intelligence, as reported by CNBC. CrowdStrike CEO George Kurtz reportedly said the company aligned parts of its business to continue scaling with focus and discipline. 

CrowdStrike's financial results for the fourth quarter showed that its total revenues reached USD 1.06 billion, which marks a 25% increase compared to the previous year. CrowdStrike said that the rest of the charges related to the layoffs would be seen in the second quarter and may include future cash expenditure related to the severance payment of the employees, their benefits, and other related costs. Uber Return-to-Office Mandate: CEO Dara Khosrowshahi Reportedly Defends Increased In-Office Requirements, New Sabbatical Policy in Tense All-Hands Meeting With Angry Employees.

CrowdStrike employed 10,118 employees working full-time as of January 31, 2025 as per its annual reprot. CrowdStrike CEO George Kurtz said in a note to the employees that the company would "prudently hire" and focus on customer-facing and product engineer roles; however, it would also reduce roles in some other business areas. CrowdStrike's share price also suffered yesterday amid the layoffs. It saw a 4% decline in the price.

(The above story first appeared on LatestLY on May 08, 2025 05:28 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).