CrowdStrike to Cut 5% of Workforce. CEO Points to AI Productivity Gains

> The company said artificial intelligence-related productivity gains were a factor in the layoffs. CrowdStrike said it plans to continue hiring in strategic areas.

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.