CrowdStrike , a well-known cybersecurity company, announced that it will lay off about 500 employees , or 5% of its staff , as part of a cost-cutting strategy.
See also: Intel: Is it preparing to lay off thousands of employees?
According to a relevant announcement to the competent supervisory authorities, the company estimates that the cost of this initiative (layoffs) will range between 36 and 53 million dollars, with the first approximately 7 million burdening the results of the first quarter, which ended on April 30. The remaining cost will be recorded in the second quarter and will mainly concern severance pay, employee benefits and related expenses.
The company employed about 10,118 full-time employees as of the end of January, according to its annual report.
See also: Meta fires 20 employees for information leak
Layoffs in the technology and cybersecurity sector
The layoffs at CrowdStrike—while numerically limited relative to the company's size (about 5%)—reflect a broader trend in the technology and cybersecurity sector: the drive to rationalize costs, even by healthy, growing companies.
While understandable from a business perspective, such moves impact people and communities, and it is important that they are accompanied by support for the workers affected.
See also: Workday will lay off about 1,750 employees
The layoffs affect not only CrowdStrike, but also the cybersecurity sector in general, especially at a time when security is a key priority for both the private and public sectors, especially after incidents of digital attacks on large companies such as Microsoft, UnitedHealth Group and Disney.
Despite the obstacles, analysts point out that CrowdStrike's quick and effective response to the technical issue that caused massive Windows outages worldwide last year helped maintain its customer trust .
Source: Reuters
