CrowdStrike, a major US cybersecurity firm, has announced it will lay off 500 workers. This is about 5% of its global staff. The company says the cuts are linked to its growing use of artificial intelligence (AI). But critics are questioning the real reason.
In a letter to employees, CEO George Kurtz explained the decision. He said AI has helped the company work faster and more efficiently. As a result, they no longer need as many workers.
Kurtz added, “We are shifting our workforce to focus more on innovation and speed. AI tools allow us to do more with less.”
A History of Trouble: Last Year’s Outage Still Fresh
The timing of the layoff announcement has sparked strong reactions. Just last year, CrowdStrike caused a huge global outage. A faulty software update from the company crashed over 8.5 million Windows systems.
Airports, hospitals, banks, and news stations were affected. Operations stopped for hours. Many users lost critical data. The damage took days to fix.
That update created chaos across continents. And now, only a year later, the same company is cutting jobs.
Critics Say Timing Feels Wrong
Experts and the public alike are questioning CrowdStrike’s motives. Professor Toby Walsh, who teaches AI at the University of New South Wales, said the company should focus on fixing past mistakes.
“Instead of letting workers go,” he said, “they should use them to build a better safety net. Emergency response teams need trained people.”
He added that the use of AI should not come at the cost of human jobs, especially after such a recent crisis.
What the Numbers Say
CrowdStrike’s recent financial results were mixed. The company reported $1 billion in revenue for Q4 2025, which is up by 25%. But it also posted a $92 million loss.
Some believe the layoffs are more about money than machine learning. Aaron McEwan, a vice president at Gartner, said using AI as a reason might just be a cover-up.
“It looks like they are trying to please investors,” McEwan said. “But real productivity gains from AI are still limited.”
Gartner’s research shows less than half of employees use AI tools at work. Even fewer, only 8%, use them to save time or increase output.
Experts Warn of AI Replacing Jobs
Dr. Niusha Shafiabady, who studies intelligent systems, said job losses due to AI are here to stay. She said companies are more likely to cut staff when AI can save money.
“The cold truth is simple,” she said. “If AI can do the job for less, companies will go for it.”
A 2023 report by the World Economic Forum supports this idea. It said 23% of all jobs could change in the next five years. The shift will be caused by AI and other trends.
The report also said 83 million jobs may vanish, even as 69 million new ones are created. That could mean a net loss of 14 million jobs worldwide.
Call for Ethical AI Use
As AI becomes more common, voices are rising for its ethical use. Professor Walsh said companies must think beyond profits.
“It’s not just about saving money,” he explained. “It’s about doing the right thing. Workers should benefit from these tools too.”
He pointed to past industrial revolutions as examples. “In every era, new tools came. But when workers were ignored, social unrest followed.”
Empower Workers, Don’t Replace Them
McEwan shared a similar message. He believes AI should be used to help people, not replace them. “Use AI to support staff,” he said, “not remove them.”
He explained that AI can take over boring tasks. That would give people more time for meaningful work.
“Smart companies won’t rush,” he said. “They’ll make sure the human side is ready first.”
CrowdStrike’s Next Steps
For now, CrowdStrike says it will focus on innovation. It plans to invest in new tech and keep pushing the limits of AI in cybersecurity.
Still, many are asking: Can the company win back trust after last year’s outage and this year’s layoffs?
With the growing power of AI comes growing responsibility. Time will tell how CrowdStrike handles both.