Cybersecurity firm Deepwatch lays off dozens, citing move to “accelerate” AI investment

Deepwatch, a prominent player in the cybersecurity sector known for its AI-driven detection and response solutions, has recently implemented significant layoffs, impacting dozens of employees. The company's CEO, John DiLullo, communicated to TechCrunch via email that this organizational shift is intended to enhance their focus on artificial intelligence and automation. Sources within the company, speaking on the condition of anonymity, indicated that the layoffs affected between 60 and 80 staff members from a total workforce of approximately 250. A LinkedIn post from a recently laid-off employee corroborated this figure, mentioning that around 80 individuals were let go. One current employee expressed skepticism about the company's AI initiatives, suggesting that the motives behind these layoffs might not be entirely transparent. The trend of layoffs in the cybersecurity industry is not isolated to Deepwatch. Earlier this year, major cybersecurity firm Crowdstrike made headlines by reducing its workforce by about 500 employees, approximately 5% of its staff, despite reporting record financial results. Other companies in the cybersecurity space, including Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos, have also announced workforce reductions this year, reflecting a broader trend within the industry. As the landscape of cybersecurity evolves with a growing emphasis on AI, the implications of these layoffs raise questions about the future direction of both Deepwatch and the sector as a whole.