CrowdStrike to Cut 5% of Workforce Citing AI Efficiencies Amidst Ongoing Recovery from Global IT Outage
Cybersecurity firm CrowdStrike, known for causing a major global IT outage last year, announced it will cut 5% of its workforce—around 500 jobs—citing efficiencies gained through artificial intelligence (AI), The Guardian reported. CEO George Kurtz stated AI is reshaping industries, accelerating threats, and driving innovation and operational efficiencies across the company. The layoffs are also driven by market demands for growth and product expansion. CrowdStrike expects up to $53 million in related costs.
The company reported $1 billion in revenue for Q4 2025, a 25% increase year-over-year, but posted a $92 million loss. Last July, a faulty software update from CrowdStrike disrupted 8.5 million Windows systems worldwide, affecting airports, hospitals, and payment systems.
Experts expressed skepticism about AI justifications for layoffs, with some warning companies might use AI as a cover for financial issues. AI researchers called the cuts “tone deaf” and urged redeployment of staff to emergency response roles. The trend of AI-driven job reductions is expected to continue globally.
