Cybersecurity firm Deepwatch lays off up to 80 employees to boost AI investment

Cybersecurity company Deepwatch has laid off dozens of employees in a restructuring move aimed at accelerating its investments in artificial intelligence (AI) and automation. The firm, known for its AI-powered threat detection and response platform, confirmed the job cuts on Wednesday.

Chief executive John DiLullo informed TechCrunch that the company was aligning its organisational structure to support its plans for greater investment in AI and automation. He stated that this decision formed part of a broader effort to enhance Deepwatch’s technology capabilities and improve operational efficiency.

According to a current employee, who spoke on condition of anonymity as they were not authorised to discuss internal matters, the layoffs affected between 60 and 80 workers from a total workforce of around 250. A LinkedIn post from another individual who claimed to have been part of the layoffs also cited 80 employees as being impacted.

Multiple former employees have since taken to LinkedIn to announce that they were among those affected, with at least eight ex-staffers publicly confirming their departure.

Deepwatch’s restructuring comes amid a wider trend of job cuts within the cybersecurity industry. Earlier this year, CrowdStrike laid off approximately 500 employees, representing 5% of its workforce, despite reporting a record year with $1.38 billion in operating cash flow and $1.07 billion in free cash flow. Other cybersecurity companies, including Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos, have also implemented layoffs in recent months.

The company has not provided further details about the specific nature of its AI initiatives, but DiLullo emphasised that the restructuring was essential to position Deepwatch for its next phase of technology-driven growth.