CrowdStrike Holdings Inc (NASDAQ:CRWD) shares are trading lower Wednesday after the cybersecurity company announced a new strategic initiatives, including a workforce reduction.
What Happened: CrowdStrike said in a filing Wednesday morning that it adopted a strategic plan to make operations more efficient. The plan includes cutting approximately 500 roles, or 5% of the company’s global workforce in an effort to operate with discipline as it continues to target scaling up to $10 billion in annual recurring revenue.
CrowdStrike expects to incur approximately $36 million to $53 million in charges related to the plan. $7 million of those charges are expected to be recognized in the first quarter. The actions are expected to be substantially complete by the end of the second quarter.
CrowdStrike said it expects first-quarter financial results to be in line with or above guidance provided in its fourth-quarter earnings release. CrowdStrike previously guided for first-quarter revenue of $1.1 billion to $1.106 billion, and first-quarter adjusted earnings of 64 cents to 66 cents per share.
CrowdStrike also reaffirmed its full-year guidance of $4.74 billion to $4.81 billion in revenue and adjusted earnings of $3.33 to $3.45 per share.
CrowdStrike is due to report first-quarter financial results after the market close on June 3.
CRWD Price Action: CrowdStrike shares were down 3.81% at $426.31 at the time of publication Wednesday, according to Benzinga Pro.
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