Following on the heels of the remarkable XBOW achievement, CrowdStrike, a leading cybersecurity company, announced in May 2025 that it would cut about 500 jobs, or roughly 5% of its global workforce, as part of a strategic shift to realign its operations and invest more heavily in artificial intelligence (AI). This move comes despite the company reporting significant revenue growth—29% year-over-year, reaching nearly $4 billion for fiscal year 2025—and a strong position in its core market, though it did post a net loss after a previous year of profitability.
CEO George Kurtz explained that AI adoption is central to the company’s strategy, enabling efficiencies across both front- and back-office operations, streamlining go-to-market processes, and accelerating innovation from idea to product. Kurtz described AI as a “force multiplier” that “flattens our hiring curve,” meaning fewer employees are needed for certain tasks as automation and AI-driven processes take over. The company plans to continue hiring in key areas, particularly customer-facing and product engineering roles, but will reduce headcount in other departments where AI can now handle or optimize tasks.
The layoffs are part of a broader trend in the tech industry, where companies are using AI to automate routine and administrative functions, leading to workforce reductions in those areas. CrowdStrike aims to scale its business efficiently and reach a target of $10 billion in annual recurring revenue by focusing on high-impact opportunities, including expansion into new market segments such as cloud, identity, and exposure management. The company also cited the need to consolidate more customers onto its Falcon platform as a factor in its restructuring.
CrowdStrike expects to incur between $36 million and $53 million in charges related to the layoffs, including severance and benefits. The announcement reflects both the broader impact of AI on the workforce and the company’s specific efforts to remain competitive and agile in a rapidly evolving cybersecurity landscape.
