Deepwatch, a cybersecurity business that offers an AI-driven detection and response platform, let go of a number of employees this past Wednesday, pointing to AI as a contributing factor.
Deepwatch’s CEO, John DiLullo, stated in an email to TechCrunch that the company “is adjusting our organization to speed up our substantial investments in AI and automation.”
According to a Deepwatch employee, who wished to remain anonymous because they lacked authorization to speak to the media, the layoffs impacted between 60 and 80 individuals, from a total of about 250 employees. A LinkedIn post by someone claiming to have been laid off also mentioned 80 individuals.
“They’re experimenting with AI and agentic AI, but it seems like nonsense,” the current employee informed TechCrunch.
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TechCrunch has seen LinkedIn posts from eight former Deepwatch employees indicating they were laid off.
Deepwatch isn’t the sole cybersecurity company to have executed layoffs thus far this year. In May, cybersecurity giant Crowdstrike laid off approximately 500 employees, or 5% of its workforce. The cuts occurred despite a banner year with “operating cash flow of $1.38 billion and record full year free cash flow of $1.07 billion,” according to a press release issued at that time.
Other cybersecurity companies that have reduced their staff this year include Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos.
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