CrowdStrike workforce cuts not indication of slow down in demand, says Jefferies

After CrowdStrike (CRWD) announced a strategic plan that includes a reduction in workforce by 500 positions, or approximately 5% of its workforce, Jefferies said the firm views the reduction in force as a likely result of ensuring progress on profit post Customer Care Package discount margin headwinds and does not see this as an indication of a slow down in demand or growth. CrowdStrike also said that it expects fiscal Q1 results to be in-line with or above guidance and it has reaffirmed its FY26 guidance ahead of reporting results on June 3, noted the analyst, who keeps a Buy rating and $410 price target on the shares.