The cybersecurity firm that gained notoriety last year due to a significant global IT failure has announced plans to reduce 5% of its workforce, citing the need for “AI efficiency.”
Earlier this week, CrowdStrike’s CEO, George Kurtz, communicated to employees that approximately 500 positions would be eliminated worldwide. He emphasized this move was linked to the efficiencies gained through AI.
“We find ourselves at a crucial point where AI is transforming every sector, shaping new challenges and evolving customer expectations,” he remarked.
Kurtz also mentioned that AI could streamline processes and foster quicker innovation, suggesting it enhances efficiency across all areas of the business.
“AI really acts as a force multiplier throughout the organization,” he added.
The job cuts are also attributed to the need for sustainable growth and the expansion of product lines.
The company anticipates that these layoffs may incur costs of up to $53 million.
In its most recent financial report, CrowdStrike posted $1 billion in revenue for Q4 of 2025, reflecting a 25% increase from the same time in 2024, while also recording a loss of $92 million.
Last July, the company faced backlash after a software update, meant to enhance cybersecurity detection, inadvertently disrupted 8.5 million Windows systems globally.
This disruption caused chaos at airports, impacted hospitals, knocked out television networks, and affected payment systems.
Aaron McCann, a vice-president from consultancy Gartner, expressed skepticism regarding companies announcing AI efficiencies when they are also forecasting revenue declines, a sentiment echoed by CrowdStrike.
“It feels like a justification for workforce reductions, and I’m wary of that,” he said. “It’s fundamentally a financial decision.”
McCann pointed out that firms are under pressure to make the significant AI investments pay off, but the expected productivity gains have not yet materialized.
A recent Gartner survey revealed that less than half of employees actively use AI at their jobs, with only 8% employing it to improve productivity.
Toby Walsh, an artificial intelligence professor at the University of New South Wales, remarked that CrowdStrike’s announcement seemed somewhat concerning in light of its previous issues.
“It might be wiser to reallocate these 5% of employees to tackle emergency responses and bug fixes,” he suggested.
Walsh also predicted that more announcements like this would follow.
“It’s straightforward—more profits for companies, but fewer jobs for employees. History teaches us that if we unite, these savings can actually improve work conditions for everyone,” he noted.
Niusha Shafiabady, an associate professor specializing in computational intelligence at the Australian Catholic University, indicated that the shift towards AI-driven jobs is an “inevitable reality.”
“Even with good intentions, change occurs, and many will lose traditional roles to AI and tech,” she pointed out.
“If companies prioritize cost savings through AI and technology enhancements, employees may find themselves laid off. That’s the harsh truth.”
The 2023 World Economic Forum report indicates that AI and other economic trends will affect nearly 23% of jobs globally over the next five years, predicting 69 million new jobs will emerge while 83 million will disappear—resulting in a net decline of 2%, according to Shafiabady.
McCann emphasized that tech companies, in particular, are increasingly looking for ways to utilize AI to shrink their workforce.
“There’s no doubt some companies are eager to downsize thanks to AI’s capabilities,” he stated.
“However, it’s essential for firms to consider strategies that enhance their workforce instead of replacing it with AI, especially at this stage.”
