Deepwatch Cuts Jobs to Boost AI Investment
▼ Summary
– Deepwatch laid off dozens of employees, citing AI as one of the reasons for the job cuts.
– The company is restructuring to increase investments in AI and automation, according to the CEO.
– Between 60 and 80 employees were affected, representing a significant portion of the roughly 250-person workforce.
– A current employee expressed skepticism about the company’s AI initiatives, calling them “bullshit.”
– This is part of a broader trend of layoffs in the cybersecurity industry, with companies like Crowdstrike and Sophos also cutting jobs this year.
In a strategic move to prioritize technological advancement, the cybersecurity firm Deepwatch has eliminated dozens of positions, redirecting resources toward expanding its artificial intelligence and automation capabilities. The company confirmed the layoffs are part of an organizational realignment designed to accelerate significant investments in AI, signaling a sharpened focus on next-generation security solutions.
Deepwatch CEO John DiLullo explained the decision, stating the workforce reduction aligns with the company’s commitment to boosting its AI and automation initiatives. While the exact number of affected employees was not officially released, sources familiar with the matter indicate between 60 and 80 staff members were let go. With a total workforce of approximately 250 people, this represents a substantial reduction in personnel.
An anonymous current employee expressed skepticism about the reasoning behind the cuts, suggesting the company’s stated AI and “agentic AI” plans might not fully justify the layoffs. Separately, multiple posts on LinkedIn from individuals identifying as laid-off employees corroborated the figure of roughly 80 job losses, with at least eight former staffers publicly announcing their departures.
This trend is not isolated to Deepwatch. The broader cybersecurity industry has witnessed a series of workforce reductions this year, even among financially successful companies. For instance, CrowdStrike, a major player in the sector, laid off approximately 500 employees, about 5% of its staff, back in May. This move came despite the company reporting record-breaking financial results, including an operating cash flow of $1.38 billion.
Several other prominent cybersecurity providers have also implemented staff cuts in recent months. The list includes Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos, pointing to a wider industry pattern of restructuring and operational adjustments.
(Source: TechCrunch)
