Deepwatch, a cybersecurity company that provides an AI-powered detection and response platform, laid off dozens of employees on Wednesday. The company cited artificial intelligence as one of the reasons for the staff reductions.
John DiLullo, the CEO of Deepwatch, explained in an email that the company is aligning its organization to accelerate significant investments in AI and automation.
A current Deepwatch employee, who was not authorized to speak publicly, reported that the layoffs affected between 60 and 80 staff members. This represents a significant portion of the company, which has a workforce of around 250 employees. A post on LinkedIn from an individual who said they were laid off also mentioned 80 people.
The current employee expressed skepticism about the company’s stated reasons, saying the plans involving AI and agentic AI sound like nonsense.
According to LinkedIn posts seen by TechCrunch, eight former Deepwatch employees have announced they were part of the layoff.
Deepwatch is not the only cybersecurity company to conduct layoffs this year. In May, the cybersecurity giant Crowdstrike laid off approximately 500 workers, which was about five percent of its workforce. Those cuts occurred despite the company having a record year with strong financial performance, including an operating cash flow of 1.38 billion dollars.
Other cybersecurity firms that have reduced their workforce this year include Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos.