CrowdStrike Cuts 500 Jobs, Reaffirms Forecasts Amid Stock Decline and Tech Layoffs

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Updated May 7, 2025, 12:59 PM

CrowdStrike Holdings Inc., a cybersecurity firm, announced plans to reduce its workforce by approximately 500 positions, which represents about 5% of its global employees. This decision comes as part of a broader trend in the tech industry, where over 52,000 workers have been laid off globally in 2025, with at least 123 companies conducting job cuts in the past four months. The layoffs at CrowdStrike are expected to incur charges ranging from $36 million to $56 million, with a portion of these costs to be recognized in the first quarter ended April 30. The company, based in Austin, Texas, had 10,118 full-time employees as of January 31. Despite the layoffs, CrowdStrike reaffirmed its fiscal 2026 forecasts, maintaining its full-year revenue guidance between $4.74 billion and $4.81 billion and its annual adjusted profit per share estimate of $3.33 to $3.45. The company's first-quarter revenue forecast is set between $1.10 billion and $1.11 billion, with financial results to be released on June 3. Amid these layoffs, CrowdStrike's stock experienced a decline, attributed in part to the rise of AI roles and the vanishing of legacy positions, which has led to low hiring confidence across the industry. The tech industry continues to face challenges, with significant layoffs reported across various sectors. Intel Corp. announced the largest share of job cuts last month, planning to reduce its workforce by 21,000 employees. Other notable companies implementing layoffs include Expedia Group Inc., Meta Platforms Inc., and Microsoft Corp. Additionally, CrowdStrike executives sold shares worth over $31 million following the announcement of the layoffs.

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