Deepwatch, a cybersecurity company specializing in an AI-driven detection and response system, let go of several dozen employees on Wednesday, attributing the decision in part to advancements in AI.
Deepwatch CEO John DiLullo shared in an email to TechCrunch that the company is “realigning our team to speed up our major investments in AI and automation.”
A current Deepwatch staff member, who requested anonymity as they were not cleared to speak publicly, informed TechCrunch that between 60 and 80 employees were impacted by the layoffs, out of a total staff of about 250. A LinkedIn post from someone claiming to be among those laid off also referenced 80 affected individuals.
“They claim to be working on AI and agentic AI, but it just seems like nonsense,” the employee told TechCrunch.
According to LinkedIn posts reviewed by TechCrunch, eight former Deepwatch workers publicly stated they had been let go.
Deepwatch is not alone in reducing its staff this year. In May, cybersecurity leader CrowdStrike cut about 500 jobs, representing 5% of its employees. These layoffs occurred even after a record year, with “operating cash flow of $1.38 billion and record full year free cash flow of $1.07 billion,” as stated in a press release at the time.
Other cybersecurity businesses that have downsized their teams this year include Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos.
