Deepwatch Layoffs: Cybersecurity Firm Shifts Focus to AI

Deepwatch Reduces Workforce, Cites AI Investment

Deepwatch, a provider of an AI-driven cybersecurity detection and response platform, recently implemented workforce reductions impacting numerous employees. The layoffs occurred on Wednesday, with the company attributing the decision, in part, to a strategic focus on artificial intelligence.

CEO Statement on Organizational Alignment

According to an email statement provided by John DiLullo, CEO of Deepwatch, the company is restructuring its operations. This realignment is intended to expedite substantial investments in AI and increased automation capabilities.

Layoff Numbers and Employee Reports

An existing Deepwatch employee, requesting anonymity due to not being authorized to discuss the matter publicly, reported to TechCrunch that between 60 and 80 staff members were affected. The company’s total workforce is approximately 250 individuals.

Confirmation of the scale of the layoffs also surfaced on LinkedIn, where a former employee indicated that around 80 people had been let go.

Internal Skepticism Regarding AI Implementation

The anonymous employee expressed reservations about the company’s approach to AI, specifically mentioning “agentic AI,” and voiced skepticism regarding its practical application.

Confirmed Layoffs via LinkedIn

TechCrunch identified LinkedIn posts from eight former Deepwatch employees confirming their recent layoff status.

Broader Trend of Layoffs in the Cybersecurity Sector

Deepwatch is not isolated in its decision to reduce staff. Several other cybersecurity firms have also undertaken layoffs throughout the current year.

Recent Layoffs at CrowdStrike and Other Companies

In May, CrowdStrike, a leading cybersecurity organization, reduced its workforce by approximately 500 employees, representing 5% of its total staff. This occurred despite a financially successful year, with reported operating cash flow of $1.38 billion and free cash flow of $1.07 billion.

Additional cybersecurity companies that have implemented workforce reductions in 2024 include Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos.