Deepwatch, a cybersecurity company specializing in AI-powered detection and response solutions, has laid off dozens of employees, with the company attributing the move partly to its ongoing focus on artificial intelligence.
In an email to TechCrunch, John DiLullo, CEO of Deepwatch, stated that the company “is aligning our organization to accelerate our significant investments in AI and automation.” The restructuring is part of Deepwatch’s broader strategy to deepen its integration of AI within its cybersecurity operations and product offerings.
According to a current employee, who requested anonymity as they were not authorized to speak publicly, the layoffs affected between 60 and 80 employees out of a total workforce of approximately 250. A LinkedIn post from one of the impacted workers also cited 80 job cuts. “They’re doing something with AI and agentic AI but it sounds like bullshit,” the employee told TechCrunch, reflecting internal skepticism about the company’s direction.
Further confirming the layoffs, eight former Deepwatch employees shared on LinkedIn that they had been let go. The affected roles span multiple departments, indicating a significant restructuring effort within the company as it pivots toward AI-driven operations.
Deepwatch’s downsizing aligns with a broader trend in the cybersecurity sector, where several firms have announced layoffs this year despite the growing importance of digital defense technologies. In May 2025, cybersecurity leader CrowdStrike cut around 500 jobs, representing 5% of its workforce, despite reporting record financial results — including $1.38 billion in operating cash flow and $1.07 billion in free cash flow for the year.
Other cybersecurity firms such as Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos have also reduced their headcounts in 2025, underscoring ongoing shifts in the industry as companies adapt to automation, generative AI, and evolving threat landscapes.
While Deepwatch’s latest restructuring aims to future-proof its business through AI and automation, the move highlights a growing tension across the cybersecurity ecosystem — balancing innovation with workforce stability amid an accelerating technological transformation.
