CrowdStrike reiterated its fiscal 2026 first quarter and annual forecasts and announced a plan to cut about 500 roles, roughly five percent of its workforce, to reduce costs.
The cybersecurity company will incur about US$36 million ($55 million) to US$53 million in charges related to the layoffs, of which about US$7 million will be recognised in the first quarter ended April 30, it said in a regulatory filing.
The company said the rest of the charges will be seen in the second quarter.
The charges primarily consist of future cash expenditure related to severance payments, employee benefits and related costs.
CrowdStrike had 10,118 full-time employees as of January 31, according to its annual report.
Cyber security remains a priority for businesses and governments at a time when high-profile hacking incidents have hit companies such as Microsoft, UnitedHealth Group and Walt Disney.
Analysts have said CrowdStrike’s prompt handling of the Windows outage last year, which disrupted internet services globally, helped the company maintain customer trust.
CrowdStrike maintained its full-year 2026 revenue forecast to be between US$4.74 billion and US$4.81 billion and reaffirmed its annual adjusted profit per share estimate of US$3.33 to US$3.45.
The company’s quarterly forecast for first-quarter revenue was between US$1.10 billion and US$1.11 billion.
It will release the financial results for its first quarter on June 3.