AI Investments Drive Layoffs at Cybersecurity Firm Deepwatch

Deepwatch, a cybersecurity firm specializing in AI-powered detection and response, has laid off dozens of employees as part of a strategic shift towards accelerating investments in artificial intelligence.

The layoffs, which affected between sixty and eighty staffers out of a total workforce of around two hundred fifty, were confirmed by CEO John DiLullo in an email to TechCrunch. DiLullo stated that the company is realigning its organization to support significant investments in AI and automation.

A current employee, speaking anonymously, expressed skepticism about the rationale behind the layoffs, suggesting that the company's focus on AI may not be entirely genuine. Reports indicate that the layoffs have been acknowledged on LinkedIn by several affected employees.

This move by Deepwatch aligns with a broader trend in the tech industry where companies are increasingly prioritizing automation and AI, often at the expense of traditional workforce roles. The cybersecurity sector has experienced similar layoffs this year, with notable companies like CrowdStrike reducing their workforce by five percent despite reporting record cash flow.

Other firms in the cybersecurity space, including Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos, have also implemented job cuts in 2023. Such trends raise questions about the future landscape of the cybersecurity workforce as firms continue to invest in AI technologies.