Crowdstrike Announces Layoffs of 500 Employees Amid AI Transformation

Crowdstrike, a leading IT security firm, has disclosed plans to eliminate approximately 500 positions, which accounts for around five percent of its global workforce. This decision was communicated in an internal memo by CEO George Kurtz and subsequently reported to the U.S. Securities and Exchange Commission.

The rationale behind this significant workforce reduction is attributed to necessary restructuring driven by advancements in artificial intelligence (AI). Kurtz emphasized that these changes aim to enhance the company's operational efficiency and responsiveness in an evolving market landscape.

In the memo, Kurtz noted, "We are at a pivotal moment where AI is reshaping every industry, threats are escalating, and customer needs are shifting." He indicated that adapting to these changes is crucial for maintaining competitive advantage, asserting that AI has always been integral to the company's evolution.

While the layoffs will impact various departments, the memo did not specify which areas would be affected. However, it was highlighted that not all sectors within the company would face cuts; Crowdstrike plans to create new roles in customer support and product development moving forward. Kurtz also mentioned that impacted employees would be notified promptly.

The company has set an ambitious goal of achieving a revenue target of $10 billion with a workforce of 10,000 employees. Crowdstrike anticipates incurring costs ranging from $36 million to $53 million due to these layoffs, projected to impact financial performance through the second quarter of the fiscal year 2026.

Crowdstrike is not alone in this trend; several other technology firms are also streamlining their workforces in light of AI advancements. For instance, Salesforce recently announced the termination of around 1,000 employees and has paused new hiring. Additionally, the Swedish payment service provider, Klarna, has reduced its workforce by 22 percent over the past year, opting to automate tasks using AI technology. A study by Microsoft revealed that approximately three-quarters of companies in Germany are currently considering the integration of AI agents as digital workers.