Deepwatch, a well known cybersecurity company recognized for its AI focused detection and response platform, carried out a major round of layoffs this week. Dozens of employees were let go as the company shifts its internal structure to accelerate spending on artificial intelligence and automation.
In a statement shared with TechCrunch, CEO John DiLullo said the company is realigning its teams in order to move faster on advanced AI capabilities. According to DiLullo, the change is intended to strengthen the company’s long term strategy around machine learning driven security operations.
A current employee, who spoke to TechCrunch on the condition of anonymity because they were not authorized to talk to the media, said the cuts impacted between 60 and 80 people. Deepwatch’s workforce previously sat at around 250 employees. A public LinkedIn post from an individual who said they were part of the layoffs also referenced the number as 80.
The employee described internal discussions around AI and agentic technology, but voiced skepticism about how the strategy was presented to staff.
Growing Layoff Trend in Cybersecurity
Deepwatch is one of several cybersecurity organizations that have reduced headcount this year. In May, industry giant CrowdStrike announced that it had laid off around 500 employees, representing roughly five percent of its global workforce. That decision followed what the company called a record financial year, with more than $1.38 billion in operating cash flow and over $1 billion in free cash flow. CrowdStrike detailed the results in its press announcement at the time, which can still be viewed on its official investor relations page.
Several other cybersecurity firms have also trimmed staff in 2025. Companies such as Deep Instinct, Otorio, ActiveFence and SkyBox Security have all confirmed workforce reductions. Sophos joined the list earlier this year as well, as reported by TechCrunch and other industry outlets.
Eight former Deepwatch employees have publicly posted about losing their roles, based on LinkedIn activity reviewed by TechCrunch. Those posts have added to a broader discussion across the cybersecurity community regarding how AI adoption is reshaping staffing structures, budgets and operational demands.
Have Information About These Layoffs
TechCrunch continues to gather updates on the changes inside Deepwatch and the cybersecurity sector. Individuals with additional insight can reach reporter Lorenzo Franceschi-Bicchierai securely through Signal at +1 917 257 1382 or via encrypted apps such as Telegram and Keybase at @lorenzofb.
As companies race to adopt more automation and AI powered security models, the industry is navigating a complicated transition. For many cybersecurity professionals, the current wave of restructuring is a reminder of how quickly technology shifts can impact even well established firms.
