> The company said artificial intelligence-related productivity gains were a factor in the layoffs. CrowdStrike said it plans to continue hiring in strategic areas.
techpineapple · 19h ago
He added: "AI investments accelerate execution and efficiency: AI has always been foundational to how we operate. AI flattens our hiring curve, and helps us innovate from idea to product faster. It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office. AI is a force multiplier throughout the business."
On the stock market today, CrowdStrike stock fell more than 4% to 424. CrowdStrike stock has climbed 29% in 2025 as of Tuesday's market close.
The layoffs surprised some analysts.
"We found the announcement interesting coming from a high growth cybersecurity vendor, but believe management is proactively evolving and refocusing the business on long-term drivers and opportunities through the (reduction in force) vs. a reactive measure due to a demand issue," said RBC Capital analyst Matthew Hedberg in a report. "While the stock could be range-bound into earnings on June 3, the move likely buoys the outlook around operating income that, as a reminder, was slightly lower for fiscal 2026 vs. consensus at the time when provided last quarter."
Interesting the analysts don't seem to buy the AI efficiency explanation.
On the stock market today, CrowdStrike stock fell more than 4% to 424. CrowdStrike stock has climbed 29% in 2025 as of Tuesday's market close.
The layoffs surprised some analysts.
"We found the announcement interesting coming from a high growth cybersecurity vendor, but believe management is proactively evolving and refocusing the business on long-term drivers and opportunities through the (reduction in force) vs. a reactive measure due to a demand issue," said RBC Capital analyst Matthew Hedberg in a report. "While the stock could be range-bound into earnings on June 3, the move likely buoys the outlook around operating income that, as a reminder, was slightly lower for fiscal 2026 vs. consensus at the time when provided last quarter."
Interesting the analysts don't seem to buy the AI efficiency explanation.