CrowdStrike announces 5% job cuts, says AI is ‘reshaping every industry’

By Jordan Novet

CrowdStrike, a leading cybersecurity firm, recently announced plans to lay off approximately 500 employees, representing about 5% of its global workforce. CEO George Kurtz attributed this decision to the company’s strategic shift towards leveraging artificial intelligence (AI) to enhance operational efficiency and accelerate innovation. Kurtz emphasized that AI is foundational to CrowdStrike’s operations, streamlining processes across various departments and enabling faster product development .

This move aligns with a broader trend in the tech industry, where companies are increasingly adopting AI to automate tasks and reduce costs. In the first few months of 2025 alone, over 52,000 tech jobs have been cut, with firms like Salesforce, Workday, and Shopify also implementing layoffs to focus on AI-driven strategies .csoonline.com

However, CrowdStrike’s reputation has faced challenges due to a significant incident in July 2024. A faulty update to its Falcon Sensor software led to a global IT outage, affecting approximately 8.5 million Microsoft Windows systems. This disruption impacted various sectors, including airlines, healthcare, and financial services . Delta Air Lines was notably affected, canceling over 7,000 flights and filing a lawsuit against CrowdStrike seeking $500 million in damages .lemonde.fr+5techcrunch.com+5marketwatch.com+5cybersecuritydive.com+2messageware.com+2reuters.com+2asisonline.org+7reuters.com+7en.wikipedia.org+7

In response to the incident, CrowdStrike has taken steps to improve its update processes, including implementing staggered rollouts and allowing customers to choose their update timing . Despite these efforts, the company continues to face scrutiny and legal challenges related to the outage.theguardian.com+1en.wikipedia.org+1reuters.com

Investors and clients are advised to monitor CrowdStrike’s ongoing legal proceedings and operational adjustments as the company navigates the aftermath of the 2024 outage and its strategic pivot towards AI-driven solutions.

CrowdStrike Faces Legal and Operational Challenges Amid AI Transition