CrowdStrike to lay off 500 employees: Read what the company said

TOI Tech Desk / TIMESOFINDIA.COM / May 8, 2025, 10:26 IST

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Cybersecurity firm CrowdStrike is set to lay off 500 employees, representing 5% of its global workforce, as part of a strategic plan to enhance operational efficiencies. Despite this reduction, the company plans to strategically hire in key areas by 2026. This announcement comes alongside strong financial results for the fourth quarter, with total revenue reaching $1.

CrowdStrike to lay off 500 employees: Read what the company said

CrowdStrike, a cybersecurity technology company has announced layoffs. The company has revealed that it will layoff 5% of its global workforce. In a recent regulatory filing CrowdStrike revealed that it will have to let go off 500 employees as part of some strategic changes. CrowdStrike stated that the affected employees will receive severance packages and outplacement assistance. The company further revealed that it is also planing to make hiring in some strategic areas by end of 2026.CrowdStrike recently announced its financial results for the fourth quarter. The company announced that its total revenue reached $1.06 billion, marking a 25% increase compared to the previous year.

CrowdStrike to layoff 500 employees: What the company said

In an 8-K filing CrowdStrike revealed that it will layoff 5% of its global workforce (500 employees) as part of a strategic plan. “Company announced 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 ARR. The Plan is expected to result in a reduction of roles representing approximately 500 positions or 5% of the Company’s global workforce,” said the company.The company also revealed that it is planning to hire some key strategic positions by the 2026. “CrowdStrike expects to continue to hire in key strategic areas throughout its fiscal year ending January 31, 2026,” reads the filling. “CrowdStrike estimates that it will incur approximately $36 million to $53 million in charges in connection with the Plan, of which approximately $7 million is expected to be recognized in the first quarter of fiscal 2026, and substantially all of the remainder of which will be incurred in the second quarter of fiscal 2026,” added the company.

"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," CEO George Kurtz said in a note to the company's employees.

CrowdStrike reports strong growth in fourth quarter and fiscal year 2025

CrowdStrike has announced its fourth-quarter and fiscal year 2025 financial results, showcasing robust revenue growth and continued expansion in its AI-driven security offerings.Fourth quarter fiscal 2025 financial highlights

Revenue: Total revenue was $1.06 billion, a 25% increase, compared to $845.3 million in the fourth quarter of fiscal 2024. Subscription revenue was $1.01 billion, a 27% increase, compared to $795.9 million in the fourth quarter of fiscal 2024.
Annual Recurring Revenue (ARR) grew 23% year-over-year to $4.24 billion as of January 31, 2025, of which $224.3 million was net new ARR added in the quarter.
Subscription Gross Margin: GAAP subscription gross margin was 77%, compared to 78% for the fourth quarter of fiscal 2024. Non-GAAP subscription gross margin was 80% for both the fourth quarter of fiscal 2025 and 2024.
Income/Loss from Operations: GAAP loss from operations was $85.3 million, compared to income of $29.7 million in the fourth quarter of fiscal 2024. Non-GAAP income from operations was $217.3 million, compared to $213.1 million in the fourth quarter of fiscal 2024.
Net Income/Loss Attributable to CrowdStrike: GAAP net loss attributable to CrowdStrike was $92.3 million, compared to net income of $53.7 million in the fourth quarter of fiscal 2024. GAAP net loss per share attributable to CrowdStrike, diluted was $0.37, compared to income of $0.22 in the fourth quarter of fiscal 2024. Non-GAAP net income attributable to CrowdStrike was $260.9 million, compared to $236.2 million in the fourth quarter of fiscal 2024. Non-GAAP net income attributable to CrowdStrike per share, diluted, was $1.03, compared to $0.95 in the fourth quarter of fiscal 2024.

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