Deepwatch, a U.S.-based cybersecurity company known for its AI-powered detection and response platform, has laid off dozens of employees as it pivots toward artificial intelligence and automation. CEO John DiLullo confirmed that the organizational changes are intended to “accelerate our significant investments in AI and automation,” signaling a strategic shift in the company’s priorities.
Sources familiar with the situation told TechCrunch that between 60 and 80 staffers—roughly a third of Deepwatch’s 250-person workforce—were affected. Some laid-off employees shared their experiences on LinkedIn, with one post confirming 80 employees impacted. A current employee, speaking anonymously, expressed skepticism about the AI strategy, calling it “agentic AI but it sounds like bullshit.”
The move highlights a growing trend in the cybersecurity industry, where companies are investing heavily in AI to streamline threat detection and response. Despite the layoffs, Deepwatch is positioning itself to remain competitive as AI becomes increasingly central to cybersecurity operations, reflecting broader market shifts.
Deepwatch is not alone in making workforce cuts this year. In May, cybersecurity giant CrowdStrike laid off around 500 employees, or 5% of its staff, even after reporting record financial performance. Other cybersecurity companies that have reduced their workforce in 2025 include Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos.
Analysts say that while layoffs are painful for employees, companies are often reallocating resources toward emerging technologies such as AI to stay ahead in a rapidly evolving cybersecurity landscape. For Deepwatch, the challenge will be balancing innovation with maintaining operational stability as it navigates this transition.
source: techcrunch