CrowdStrike Reveals Plans to Cut Workforce by 5 Percent

2025-05-08 01:18:19

(MENAFN) American cybersecurity firm CrowdStrike has revealed its intention to cut approximately 500 jobs, representing about 5% of its total employees worldwide, according to a recent regulatory filing.

The company stated on Tuesday that these layoffs are part of “a strategic plan (the ‘Plan’) to evolve its operations to yield greater efficiencies as the company continues to scale its business with focus and discipline to meet its goal of $10 billion in ending Annual Recurring Revenue.”

Despite the job reductions, CrowdStrike anticipates ongoing recruitment in crucial strategic sectors throughout the fiscal year concluding on January 31, 2026.

The company estimates that it will incur costs ranging from $36 million to $53 million related to this plan. Of this amount, around $7 million is expected to be recognized in the first fiscal quarter of 2026, with the majority of the remaining expenses occurring in the second quarter.

The filing further elaborated, "These charges primarily consist of approximately $19 million to $26 million of future cash expenditures related to severance payments, employee benefits, and related costs; and approximately $10 million to $20 million in non-cash charges for stock-based compensation. The Company intends to exclude the charges associated with the Plan from its non-GAAP (Generally Accepted Accounting Principles) financial measures," the company further noted.

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