Adam Clark
CrowdStrike Holdings was falling early on Wednesday after the cybersecurity company said it would cut about 5% of the workforce, or 500 jobs. CrowdStrike said artificial intelligence is part of the reason for the layoffs.
CrowdStrike disclosed the cuts in a regulatory filing on Wednesday. It said the layoffs were part of a strategic plan to achieve greater efficiency but it expects to continue to hire in key strategic areas throughout its fiscal year ending Jan. 31, 2026.
"While we will continue to prudently hire, primarily in customer-facing and product engineering roles, we are reducing roles in some areas of the business," CEO George Kurtz said in a letter to employees.
"AI flattens our hiring curve, and helps us innovate from idea to product faster. It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office," Kurtz wrote.
CrowdStrike stock was down 2.1% in premarket trading.
CrowdStrike estimated the cuts will lead to charges of $36 million to $53 million, with $7 million to be recognized in the first quarter of its fiscal 2026 year, and the rest in its second quarter.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
May 07, 2025 07:28 ET (11:28 GMT)
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