CrowdStrike, the cybersecurity firm behind last year’s global IT outage, has announced plans to cut 5% of its workforce — around 500 jobs — as part of a broader effort to improve efficiency, partly driven by its increasing reliance on artificial intelligence.
Despite the layoffs, the company said it would continue hiring in strategic areas through the end of its fiscal year, which concludes on January 31, 2026.
In a recent US stock market filing, CrowdStrike explained, “We’re operating at a pivotal moment, where AI is transforming every industry, accelerating threats, and reshaping customer expectations.” The company added that AI is helping it innovate faster, streamline operations, and boost efficiency across all departments.
Addressing the job cuts directly, CrowdStrike said the restructuring aims to improve operational efficiency and support its long-term goal of reaching $10 billion in annual recurring revenue (ARR). The layoffs are expected to cost the company between $36 million and $53 million.
The company also reported $1 billion in revenue for the fourth quarter of fiscal 2025, along with a net loss of $92 million.
CrowdStrike gained global attention last year after it released a flawed security update that crashed over 8.5 million Windows machines worldwide, triggering widespread Blue Screen of Death (BSOD) errors. The glitch led to grounded flights, disrupted broadcasts, halted payment systems, and even outages in emergency services.
