CrowdStrike, a $30 billion leader in the cybersecurity industry, just dropped a bombshell. Without warning, they announced plans to lay off some 500 employees, or an estimated 5% of the company’s global workforce. The company is using this as part of a larger effort to cut costs. In addition to backfilling, they are hiring in areas of strategic importance as they look ahead to their FY, which ends January 31, 2026.
It became one of the most well-known security companies in the world in 2016 for its role in investigating the DNC’s hack and tying that breach to the Russian government. This breach shot the company into the stratosphere, establishing it as one of the most well-known names on the cyber block.
As you might remember, CrowdStrike had a really challenging midsummer following the rollout of a bad software patch. This was a high-impact security issue that affected 8.5 million Windows devices globally. This programming error resulted in a major flight interruption. It paralyzed processes across the entire travel ecosystem—from airports to airlines, to banks, to hotels and other businesses globally. The incident highlighted the enormous reach of CrowdStrike’s updates and policy changes on IT systems around the world.
CEO George Kurtz wrote in a letter to employees that the layoffs have been “focused on improving operational efficiency.” He further stated that this step is important for them to continue their leadership role on cybersecurity.
“These changes position us to move faster, operate more efficiently, and continue our cybersecurity leadership,” – George Kurtz
CrowdStrike has filed an 8-K filing with the Securities and Exchange Commission (SEC) to explicitly announce the layoffs. To address this issue, the company is refocusing its hiring priorities. Being buffeted by the storm of change brought on by the upgrade, they’re hoping to build their skills in these vital areas.
Lorenzo Franceschi-Bicchierai Lorenzo is a Senior Writer at TechCrunch. He’s a leading expert on cybersecurity and privacy, and he has reported widely on CrowdStrike’s historical woes and its changing plans.
Despite the tricky transition period, CrowdStrike is approaching this critical moment with confidence. Beyond building more technological muscle, it’s focused on shoring up its overall market leadership position as the cybersecurity landscape grows more competitive.