CrowdStrike Holdings, Inc. (CRWD) shares plummeted 5.08% in pre-market trading on Wednesday following the company's announcement of a significant workforce reduction. The cybersecurity giant revealed plans to cut approximately 500 jobs, representing about 5% of its global workforce, as part of a strategic initiative to enhance operational efficiency.

In a regulatory filing, CrowdStrike disclosed that it expects to incur charges between $36 million and $53 million related to the layoffs, with approximately $7 million to be recognized in the first quarter of fiscal 2026. The company cited artificial intelligence (AI) as a key factor in this decision, stating that AI is helping to flatten their hiring curve and accelerate innovation processes.

Despite the job cuts, CrowdStrike reaffirmed its fiscal 2026 guidance and expects its first-quarter results to be in line with or above previous forecasts. CEO George Kurtz emphasized that the company will continue to hire strategically, particularly in customer-facing and product engineering roles. The move reflects a broader trend in the tech industry, where companies are leveraging AI to streamline operations and reduce costs. As CrowdStrike navigates this transition, investors will be closely watching how these changes impact the company's long-term growth and market position in the competitive cybersecurity landscape.