US company CrowdStrike lays off 5 percent of employees

Published: 2025-05-09 19:01:20 ET CRWD

Published on 05/09/2025 at 19:01

Key takeaways

CrowdStrike, the cybersecurity company notorious for a global IT outage last year, announced it will lay off 5 percent of employees, under the guise of increased efficiency thanks to artificial intelligence. CEO George Kurtz explained that AI accelerates innovation and streamlines operations within the company. He also attributed the layoffs in part to changing market demands and a growing product portfolio.

Although CrowdStrike reported revenue growth in March, the company expects to incur significant costs related to the layoffs. The announcement has prompted skepticism from industry analysts, who question the timing and justification for calling AI efficiencies amid potentially slowing financial performance. Some experts suggest that companies are using AI as a pretext to reduce headcount to satisfy investors.

Experts call for worker protection

Academic researchers stress the need for proactive measures to mitigate the negative effects of AI on employment. They advocate using AI to enhance human capabilities rather than simply replacing workers. The transition to an AI-driven future requires careful consideration and collaboration to ensure a fair and equitable outcome for all stakeholders.

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