Crowdsstrike said on Wednesday that it would reduce 500 jobs, or 5% of its global workforce, as part of a plan to develop your business and reach a target of $ 10 billion in annual recurring income, according to a regulatory file.
In a note attached to a commission of securities and exchange depositThe CEO George Kurtz told employees that the company would continue to rent cautiously in the roles oriented towards customers and product engineering, but that it had to make changes in order to operate more efficiently and continue its leadership on the market.
“We operate in a market inflection point and technology, the AI reshaping all industries, accelerating threats and evolving needs of customers,” Kurtz said in memo. “To lead to a large scale, with nearly 10,000 crowdsstrikers and a clear route at $ 10 billion in arrival, we evolve how we operate.”
Kurtz cited three factors in the decision: IA investments accelerate execution and efficiency and flatten the company’s job curve; Market demand stimulates sustained growth in the company; And the company evolves its customer sales and success teams, because more and more customers standardize on the Falcon platform.
Crowdstrike has operated in a highly competitive environment, with rival 3 -alto rival networks launching a Controversial program that offered incentives So that companies migrate to its platforms. This has led to a competitive price spiral involving several companies that hinder maintaining their market share.
Crowdsstrike also faced significant pressure after a Global orchelle in July 2024 linked to a defective software upgrade. More than 8 million Windows computers have been temporarily disrupted and its rivals quickly started to leap on the advisability of poaching the market share of Crowdsstrike.
Kurtz admitted that the cuts would be difficult, and he said that the company’s offices would be closed on Wednesday and Thursday, the employees working at home.
Crowdstrike plans to count between $ 36 and $ 53 million in charges, with 7 million dollars recognized during the first quarter of the 2026 fiscal year, which ended on April 30, and almost all the others in the second quarter.
The charges include between $ 19 and $ 26 million in cash expenses for starting allowances, benefits and related costs, as well as $ 10 to 20 million in uncluttered expenses for shares remuneration.
Crowdsstrike plans to finish the job cuts at the end of the second quarter.
The company has reaffirmed its prospects for profits provided in March and will continue to hire in strategic areas throughout the financial year, which ends on January 31, 2026.
The benefits of the first quarter will be published on June 3 after the closing of the market.