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Major cyber security firm CrowdStrike has announced that it will be axing around 5 per cent of its staff, roughly 500 people.
In an 8-K filing with the US Securities and Exchange Commission (SEC), CrowdStrike announced a new “strategic plan” to make its operations more efficient, which involves redundancies of 5 per cent or 500 people. According to its annual report released in January, the company had 10,118 employees.
“On May 6, 2025, the company announced a strategic plan (the ‘plan’) to evolve its operations to yield greater efficiencies as the company continues to scale its business with focus and discipline to meet its goal of $10 billion in ending ARR.
“The plan is expected to result in a reduction of roles representing approximately 500 positions or 5 per cent of the company’s global workforce. CrowdStrike expects to continue to hire in key strategic areas throughout its fiscal year ending January 31, 2026,” it said.
As seen by The Wall Street Journal, CrowdStrike CEO George Kurtz notified employees of the plan, saying that it would “position us to move faster, operate more efficiently, and continue our cyber security leadership”.
The plan is set to cost CrowdStrike “approximately [US]$36 million to [US]$53 million”, with roughly US$7 million being spent in the first quarter, with the costs relating to redundancy and severance packages, employee benefits and “non-cash charges for stock-based compensation”.
The plan comes as CrowdStrike deals with the fallout of the major global outage that it caused in July last year when it pushed a flawed update that bricked Microsoft systems and devices all over the world.
In Australia, the Commonwealth Bank, Foxtel, the ABC, and more suffered widespread blue screens of death on Windows PCs. Airlines were also impacted, resulting in flights being delayed and cancelled.
The cyber security firm is now facing a number of class action lawsuits, including an ongoing legal battle with Delta Air Lines, which faced much longer delays.
However, its fast resolution of the issue has assisted in maintaining trust with its customers, according to analysts.
CrowdStrike said its full-year 2026 revenue forecast will be between US$4.74 billion and US$4.81 billion.
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