CrowdStrike, a prominent US cybersecurity firm, has announced plans to reduce its workforce by 5%, translating into approximately 500 job cuts globally. The move comes one year after another significant operational meltdown. A rotten software patch brought 8.5 million Windows machines to their knees around the globe. The company’s chief executive George Kurtz said AI efficiency was to blame for the layoffs. He is directing them to move towards utilizing artificial intelligence in order to increase productivity.
In a note to staff, Kurtz outlined the company’s rationale behind the job cuts, linking them to an evolving technological landscape. He stated, “We’re operating in a market and technology inflection point, with AI reshaping every industry, accelerating threats, and evolving customer needs.” CrowdStrike, like many of its peers, is keenly doing their best to steer their way through this ongoing tempestuous financial storm. For the fourth quarter of 2025, they expect to see $1 billion in revenue, up 25% from the previous year’s fourth quarter of 2024. The good news was offset by the company’s other significant announcement—the roughly $92 million loss that the company posted for the same quarter.
The choice to go through with Dangerous Layoffs is a troubling trend across the industry. Toby Walsh, an authority in the field, called out CrowdStrike’s declaration. He dubbed it as “pretty tone deaf,” particularly in light of last year’s complete system outage. The fallout from this incident caused blizzard-wide disruptions for businesses, nonprofits and government agencies that depended on their software. Walsh further remarked, “It’s pretty simple: more profits for companies, less work for workers. We should take lessons from our first Industrial Revolution. If we stand up in solidarity, we can use these savings to improve quality and quantity of work for all.
Despite the productivity gains and public sector efficiencies AI integration might yield, there remains a wave of skepticism about its impact on jobs. For Aaron McEwan, a little skepticism is in order when companies start claiming AI efficiencies following revenue forecasts being slashed. He proposed that these layoffs are not a product of cut-back capitalism but rather a craven way to communicate to investors that they mean business. “So either they’re not tracking well financially, or they’re trying to send a message to investors that good times are around the corner. So I’m immediately skeptical,” McEwan stated.
Second, there are serious financial implications for CrowdStrike due to the planned layoffs. The company expects to incur $43 million to $53 million in charges as a result of the headcount reduction. This decision is an example of the growing trend toward sweeping preemption across industries. This is especially true as companies adopt AI technologies at unprecedented rates to transform their operations.
George Kurtz emphasized that AI “flattens our hiring curve and helps innovate from idea to product faster,” suggesting that the technology not only streamlines processes but accelerates development cycles. Unfortunately, the reality is that these types of progress frequently happen at the loss of traditional workforce roles.
Niusha Shafiabady pointed out the harsh truths associated with AI adoption: “No matter what we believe is moral and right, this change will happen. Unfortunately, a lot of people will lose their traditional jobs to AI and technology.” She elaborated on the trend where companies may opt for technology over human labor when they recognize cost savings: “If [companies] see that they are saving money by using AI and technology and enhancing their services, they will ask their employees to leave. This is the reality.”
According to the World Economic Forum, AI and other macroeconomic developments will drive profound changes in patterns of employment. Their projection is that almost 23% of all jobs globally will change over the next five years. As organizations like CrowdStrike continue to adapt to these shifts, the balance between technological advancement and workforce stability remains an ongoing challenge.