CrowdStrike to Lay Off 500 Employees Amid Cost-Cutting Measures

Published 21 hours agoCRWD

CrowdStrike to Lay Off 500 Employees Amid Cost-Cutting Measures

CrowdStrike, a cybersecurity giant based in Austin, Texas, has announced a significant workforce reduction, laying off around 500 employees, which accounts for about 5% of its staff. This move is part of the company's broader strategy to manage costs effectively and optimize its operational structure, Reuters reported.

The company anticipates that the layoffs will lead to charges ranging from $36 million to $53 million. Of these, roughly $7 million will impact the fiscal first quarter ending April 30, with the remaining charges expected to be accounted for in the second quarter. Despite these cuts, CrowdStrike is staying firm on its fiscal 2026 financial forecasts, predicting full-year revenues between $4.74 billion and $4.81 billion and an adjusted annual profit per share from $3.33 to $3.45. For the first quarter, revenue is projected to fall between $1.10 billion and $1.11 billion.

The decision to downsize aligns with CrowdStrike's objective of maintaining financial resilience as part of its broader strategy to navigate current market challenges. The company is poised to release its first-quarter financial results on June 3, which will likely provide further insight into its financial health and performance trajectory.

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