CrowdStrike to Lay Off 5% of Workforce, Reaffirms Fiscal 2026 Outlook

CrowdStrike Holdings Inc, an Austin, Texas-based cybersecurity company has announced it will lay off about 500 employees around the world, 5% of its workforce overall due in part to continued scaling of its business. The layoffs aim to enhance efficiency and streamline operations.

The layoffs are estimated to incur between $36 million to $53 million in charges, primarily due to severance, employee benefits and related costs. Approximately $7 million of those charges will be recognized in the first quarter ended April 30, with the amounts recognized in the second quarter.

CrowdStrike specified its fiscal 2026 outlook despite the job cuts. The company forecasts revenue for the full year will be between $4.74 billion and $4.81 billion, as well as adjusted full-year profit per share estimates of between $3.33 and $3.45. Revenue in Q1 is expected to be between $1.10 billion and $1.11 billi

CEO George Kurtz highlighted that the firm will keep hiring with intention, especially in customer-facing roles and product engineering, but will reduce roles in other areas to fit the operational objectives of the firm.

The layoffs are part of a larger trend in technology where companies are utilizing artificial intelligence (AI) to enhance productivity and cut costs. CrowdStrike emphasized the benefits of utilizing AI to drive innovation faster, process more efficiently, and reduce hiring.

After the announcement, shares of CrowdStrike fell by nearly 4 percent in morning trading. However, analysts believe the move is more about taking proactive steps to improve efficiency than a reaction to falling demand.

CrowdStrike will report its first quarter financial results on June 3.