Deepwatch, a cybersecurity firm that develops 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 requested anonymity because they were not authorized to speak publicly, stated that the layoffs affected between sixty and eighty staff members. This represents a significant portion of the company, which has a workforce of approximately two hundred and fifty employees. A post on LinkedIn from an individual who claimed to be laid off also mentioned eighty people were affected. The current employee expressed skepticism about the company’s stated reasons, commenting that the AI justification sounded like nonsense.
According to LinkedIn posts reviewed 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 around five hundred workers, which was five percent of its workforce. Those cuts occurred despite the company reporting a record year with strong financial results, including an operating cash flow of 1.38 billion dollars.
Other cybersecurity companies that have reduced their workforce this year include Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos.