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Cybersecurity Firm Deepwatch Lays Off Dozens, Citing AI Investment
Deepwatch, a cybersecurity company that utilizes an AI-powered detection and response platform, recently laid off dozens of employees, with the firm’s CEO, John DiLullo, citing the need to “align our organization to accelerate our significant investments in AI and automation.” This move comes as the company seeks to enhance its technological capabilities and stay competitive in the ever-evolving cybersecurity landscape.
A current Deepwatch employee, who wished to remain anonymous, revealed to TechCrunch that the layoffs affected between 60 and 80 staff members out of a workforce of approximately 250 employees. This information was corroborated by a post on LinkedIn from an individual who claimed to be one of the laid-off employees, also mentioning the figure of 80 people. The employee expressed skepticism about the company’s reasoning, stating, “They’re doing something with AI and agentic AI but it sounds like bullshit.”
Cybersecurity Industry Layoffs
Deepwatch is not the only cybersecurity company to conduct layoffs this year. In May, CrowdStrike, a prominent player in the industry, laid off around 500 workers, which accounted for 5% of its workforce. Despite a record year with significant operating cash flow and free cash flow, the company still deemed it necessary to reduce its workforce. Other cybersecurity firms, including Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos, have also cut their workforce in 2025.
The layoffs at Deepwatch and other cybersecurity companies may seem counterintuitive, given the growing demand for cybersecurity services and the increasing threat of cyberattacks. However, the industry is highly competitive, and companies must continually adapt and innovate to stay ahead. The integration of AI and automation is a key aspect of this, as it enables firms to enhance their detection and response capabilities, ultimately providing better protection for their clients.
Impact and Future Outlook
The layoffs at Deepwatch have undoubtedly caused uncertainty among the company’s employees and clients. However, the firm’s commitment to investing in AI and automation may ultimately lead to improved services and increased competitiveness in the market. As the cybersecurity landscape continues to evolve, companies like Deepwatch must be willing to adapt and make difficult decisions to ensure their long-term success.
For more information on the layoffs at Deepwatch and the cybersecurity industry, readers can visit the Deepwatch website or follow reputable sources such as TechCrunch. Individuals with information about the layoffs or other cybersecurity-related news can contact TechCrunch securely via Signal, Telegram, or email.
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