n a recent announcement, the cybersecurity company stated that is planning to have CrowdStrike layoffs affecting about 5% of the worldwide workforce, equivalent
to 500 workers.
According to CrowdStrike, the layoff plan is part of a bigger plan to improve different operations and processes and achieve the final goal of $10 billion in revenue by the end of the year.
“[Layoffs represent] a strategic plan (the ‘Plan’) to evolve its operations to yield greater efficiencies as the Company continues to scale its business with focus and discipline to meet its goal of $10 billion in ending [Annual Recurring Revenue].”, the CrowdStrike company mentioned in their 8-K filing.
It should be mentioned that in order to level up the CrowdStrike careers, the company also plans to hire employees who focus on more important areas and departments within the company to have a successful fiscal year and achieve their targets by January 31, 2026, when the fiscal year ends.
“These changes position us to move faster, operate more efficiently, and continue our cybersecurity leadership,” George Kurtz, the CrowdStrike CEO, stated in his letter addressed to CrowdStrike employees.
The CrowdStrike company expects to obtain between $36 million and $53 million in layoff-related charges, of which $7 million will be recognized in the first quarter of the year that ended on April 30. According to their recent 8-K filing, the rest of the sum will be recognized in the second quarter.
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In their annual report, published a couple of months ago at the end of January, the CrowdStrike company mentioned that it has about 10,118 employees working full-time. However, after the announcement of the CrowdStrike layoffs, about 500 employees will be dismissed in order to prioritize the company’s achievements.
"While we will continue to prudently hire, primarily in customer-facing and product engineering roles, we are reducing roles in some areas of the business," the CrowdStrike CEO also stated.
Even more so, the company has reaffirmed the 2026 forecast that is expected to range between $4,74 billion and $4.81 billion, with an annual profit per share estimated between $3.33 and $3.45.
The CrowdStrike company's first-quarter revenue forecast was between $1.10 billion and $1.11 billion. However, the company will publish all its financial results for the first quarter on June 3, a month from now.
"This will likely spark debate on whether this announcement is coming from a place of weakness or strength - to which we broadly believe it is the latter," Piper Sandler stated in a note.
Stay tuned for more CrowdStrike news!
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