Cybersecurity firm Deepwatch has laid off dozens of employees as part of a restructuring move aimed at strengthening its investment in artificial intelligence and automation. The company’s Chief Executive Officer, John DiLullo, confirmed the decision in an email to TechCrunch, saying Deepwatch is “aligning our organization to accelerate our significant investments in AI and automation.”
The firm, known for its AI-powered detection and response platform, did not specify the exact number of staff affected.
However, reports from employees and LinkedIn posts suggest that between 60 and 80 workers, out of about 250 were laid off. One affected employee described the company’s AI strategy as vague, saying management had cited “agentic AI” as part of its restructuring plan but failed to provide clarity on its actual implementation. Several former staffers have since taken to social media to announce their departure, expressing disappointment over the sudden layoffs.
Deepwatch’s move reflects a broader trend in the cybersecurity industry, where companies are streamlining operations in response to rapid technological changes. Earlier this year, CrowdStrike laid off around 500 employees despite a record financial year, while firms like Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos also implemented workforce cuts.
Analysts note that while AI offers transformative potential in improving cybersecurity efficiency and response times, it is also displacing traditional roles across the sector. As more firms automate their systems, the challenge remains how to balance technological innovation with the human expertise that underpins effective cyber defense