CrowdStrike (CRWD) is cutting 5% of its workforce, or about 500 employees, as the company navigates a shifting landscape in cybersecurity. The move comes as CrowdStrike leans into artificial intelligence (AI) to streamline operations and boost efficiency. While this may sound like a typical cost-cutting move, it’s also about adapting to the changing demands of a fast-evolving industry. Despite the layoffs, the company remains bullish on its future, continuing to hire in key areas that will fuel growth.
AI Drives Change at CrowdStrike
In a letter to employees, CEO George Kurtz made it clear that AI is a central part of the company’s strategy. “AI flattens our hiring curve, and helps us innovate from idea to product faster,” Kurtz wrote. “It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office.” While it’s clear that CrowdStrike is embracing AI to optimize its workflow, the layoffs are a reflection of the new direction the company is taking. AI allows them to do more with less, automating processes and making certain roles redundant. Still, the company is keeping a strong focus on customer-facing and product engineering roles, areas it believes are crucial for future growth.
CrowdStrike’s Costs Mount as Layoffs Hit Workforce
The layoffs will come at a price, with CrowdStrike estimating charges between $36 million to $53 million. According to Reuters, the majority of these costs will be associated with severance payments and other related employee benefits. The charges will be spread across the first two quarters of Fiscal 2026, with $7 million expected to be accounted for in the first quarter. While layoffs can be tough, it’s clear that CrowdStrike sees them as a necessary step in its drive to stay ahead of the competition.
CrowdStrike’s Cybersecurity Focus Remains Strong
Despite the layoffs, CrowdStrike’s commitment to cybersecurity remains unwavering. The company has maintained its revenue forecast of $4.74 billion to $4.81 billion for fiscal 2026, demonstrating confidence in its core business. The company has been a key player in responding to high-profile cyberattacks, building a reputation for quick, reliable service. As digital security becomes even more critical for businesses worldwide, CrowdStrike’s AI-driven approach will likely continue to be its selling point, helping them stay at the top of their game in a highly competitive field.
This restructuring may be painful in the short term, but it looks like CrowdStrike is positioning itself for long-term success in the age of AI.
Is CrowdStrike Stock a Good Buy Now?
CrowdStrike has a lot of analysts singing its praises, with a “Strong Buy” rating based on 37 reviews. Its robust growth prospects and dominance in the cybersecurity space are well-reflected in its performance. With a forecasted 12-month price target of $423.62, investors are generally optimistic about its future. The average CRWD price target implies a downside of 4.42% from its current price of $443.21, but this is where things get interesting.
The broad range of price targets—from as high as $500 to as low as $347—reflects the uncertainty surrounding the stock. The higher-end target suggests confidence in the company’s continued growth, especially in the expanding cybersecurity market. However, the lower target hints at potential challenges, like competitive pressure or macroeconomic factors that could slow down CrowdStrike’s momentum.
