Skip to content

Company Behind Last Year’s Global IT Outage Plans Job Cuts as It Shifts to AI

CrowdStrike, the well-known cybersecurity firm behind last year’s significant global IT disruption, has declared that it plans to reduce its staff by five percent citing “AI-driven efficiencies.” As of January 31st, CrowdStrike employed 10,118 full-time workers; however, following this cutback, approximately 500 positions will be eliminated, as reported.

The Guardian.

Headquartered in Austin, Texas, CrowdStrike’s CEO, George Kurtz, stated that these reductions will occur worldwide, with artificial intelligence replacing certain positions. Additional factors contributing to the layoffs were cited as necessary adjustments to meet market demands for ongoing expansion and to broaden their range of products.

At this pivotal moment in both the market and technological landscapes, AI is revolutionizing each sector, intensifying challenges, and altering consumer demands,” stated Mr. Kurtz, further noting that AI “reduces the time for recruitment” and “enables us to move from concept to product more swiftly.

“AI acts as a force multiplier across the entire company,” he stated.

In 2019, CrowdStrike went public and reported a revenue of $1 billion during the fourth fiscal quarter of 2025, which also saw a loss of $92 million. According to regulatory documents, the firm expects to face charges ranging from $36 million to $53 million due to staff reductions.


What did Crowdstrike do?

Last July, CrowdStrike released an erroneous update for their threat detection software which ended up crashing approximately 8.5 million Windows systems across the globe.

Major financial institutions, air carriers, healthcare facilities, television broadcasters, and governmental departments experienced disruptions as a result of an extended service outage.



Additionally Consider | Workplace AI Usage Could Harm Your Career Standing, Research Reveals


AI taking jobs

CrowdStrike isn’t alone in employing AI to reduce its workforce of human employees. Recently, last month, language learning app Duolingo stated they will “progressively cease utilizing contractors for tasks that AI can manage.”

The firm rationalized its change in strategy, explaining that it had made a comparable decision back in 2012 by heavily investing in mobile technology.

“I’ve mentioned this during numerous Q&A sessions and meetings, but I want to formalize it: Duolingo will prioritize AI-driven approaches moving forward. AI is already reshaping the way tasks get accomplished. The conversation isn’t about whether or when; it’s currently underway,” stated Mr. von Ahn in the company-wide memo published on Duolingo’s platform.

LinkedIn

page.

In addition to ceasing the use of contractors, Duolingo plans to employ AI for assessing performance evaluations. Furthermore, team size approvals will occur solely when a group is unable to further automate their tasks.


Discover more from newsonblockchain.com

Subscribe to get the latest posts sent to your email.

author avatar
Crypto Beast

Leave a Reply

Discover more from newsonblockchain.com

Subscribe now to keep reading and get access to the full archive.

Continue reading