Deepwatch, a cybersecurity company that creates an AI-driven detection and response platform, dismissed numerous employees on Wednesday, pointing to AI as a contributing factor.
John DiLullo, CEO of Deepwatch, informed TechCrunch in an email that the organization “is restructuring to boost our major investments in AI and automation.”
A current employee at Deepwatch, who requested anonymity due to not being authorized to communicate with the media, disclosed to TechCrunch that the layoffs impacted between 60 and 80 employees, from a total workforce of approximately 250. A Linkedin post by an individual claiming to be among those laid off also mentioned 80 individuals.
“They’re pursuing something with AI and agentic AI, but it sounds like nonsense,” the current staff member remarked to TechCrunch.
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Eight former employees from Deepwatch confirmed their layoffs, according to LinkedIn posts reviewed by TechCrunch.
Deepwatch is not the sole cybersecurity firm to implement layoffs this year. In May, the cybersecurity leader CrowdStrike laid off around 500 employees, or 5% of its staff. The reductions occurred notwithstanding a record year featuring “operating cash flow of $1.38 billion and record full year free cash flow of $1.07 billion,” as stated in a press release at the time.
Additional cybersecurity companies that have reduced their workforce this year include Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos.
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