Cybersecurity firm CrowdStrike Holdings Inc. today announced the layoff of about 500 employees, accounting for 5% of its global workforce.

The company said it’s part of a strategic initiative to enhance operational efficiency and focus on achieving $10 billion in annual recurring revenue by January 2026. In a Form 8-K filing with the U.S. Securities and Exchange Commission, CrowdStrike said that layoffs are intended to “evolve its operations to yield greater efficiencies” as it scales up toward long-term growth targets.

Notably, the company cited artificial intelligence as a factor behind the employee cuts, saying that AI offers faster innovation, streamlined execution and a reduced need for headcount.

The company estimates total charges related to the layoffs will range between $36 million and $53 million. Of that, $7 million is expected to be recorded in the current fiscal quarter, with the remainder primarily falling in the second quarter. The bulk of the costs will go toward severance, benefits and stock-based compensation.

Despite the job cuts, CrowdStrike said it plans to continue hiring in critical areas, particularly in customer-facing and product engineering roles. CrowdStrike Chief Executive George Kurtz said in a message to employees that the company remains committed to scaling with “focus and discipline” as it strengthens its leadership in the cybersecurity market.

Kurtz also emphasized the growing importance of AI in the company’s operations. “AI flattens our hiring curve,” he wrote, noting how the technology is accelerating product development, improving go-to-market strategies and driving operational efficiency across departments.

The layoffs come as CrowdStrike faces increasing market demands and evolving customer needs. The company pointed to growing opportunities in areas such as next-generation security information and event management, identity protection, cloud security and exposure management, all of which are central to its Falcon platform strategy.

Along with the layoff announcement, CrowdStrike reaffirmed its financial guidance for its fiscal year 2026, projecting revenue between $4.74 billion and $4.81 billion with adjusted earnings per share of $3.33 to $3.45. The company is scheduled to report its first-quarter results on June 3.

CrowdStrike isn’t the first company to announce layoffs this year or even in the last month and it certainly won’t be the last this year as AI transforms businesses.

Other companies that have announced layoffs in the last month include Intel Corp., which announced on April 23 that is was cutting more than 20% of its workforce in a major restructuring; Google LLC, which let go of hundreds from its consumer hardware division April 11; and Meta Platforms Inc., which laid off more than 100 employees from its Reality Labs unit on April 24.

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