Cybersecurity firm CrowdStrike announced plans on Wednesday to lay off approximately 500 employees—about 5% of its global workforce—to streamline operations and cut costs.
The announcement came as the company reaffirmed its fiscal 2026 first-quarter and full-year financial forecasts.
The job cuts are expected to cost CrowdStrike between $36 million and $53 million, primarily in severance payments, benefits, and related expenses. About $7 million of these charges will be recognized in the fiscal first quarter, which ended on April 30, with the remainder reflected in the second quarter, according to a regulatory filing.
Despite the cost-cutting move, CEO George Kurtz said the company remains committed to growth in strategic areas. “While we will continue to prudently hire, primarily in customer-facing and product engineering roles, we are reducing roles in some areas of the business,” Kurtz noted in a message to employees.
CrowdStrike, which reported having 10,118 full-time employees as of January 31, saw its shares fall nearly 4% in early trading following the announcement.
The company reiterated its full-year 2026 revenue guidance of $4.74 billion to $4.81 billion and an adjusted annual profit per share forecast of $3.33 to $3.45 First-quarter revenue is projected to range between $1.10 billion and $1.11 billion. Final financial results will be released on June 3.
Analysts said the layoffs are not necessarily a sign of weakness. “This will likely spark debate on whether the announcement stems from weakness or strength — we broadly believe it is the latter,” wrote investment bank Piper Sandler.
CrowdStrike’s reputation remains strong in the cybersecurity space, bolstered by its effective handling of last year’s global Windows outage, which disrupted internet services but helped solidify customer trust in the company’s rapid response capabilities.
Cybersecurity continues to be a critical focus for governments and corporations, particularly in the wake of recent cyberattacks on high-profile firms such as Microsoft, UnitedHealth Group, and Walt Disney.
