CrowdStrike To Reduce Workforce By 5%, Estimates Up To $53M In Charges

CrowdStrike Holdings Inc. (CRWD) stated on Wednesday that it will reduce 500 positions or about 5% of its workforce as it looks to realign its business.

CEO George Kurtz stated that while the firm will continue to hire prudently, primarily in customer-facing and product engineering roles, it is reducing roles in some areas of the business.

“We will begin meeting with affected employees over the next day and will complete these conversations across regions as quickly as possible, in accordance with local laws and consultation requirements,” he said.

The cybersecurity firm estimates that it will incur approximately $36 million to $53 million in charges in connection with the workforce reduction.

Of this, approximately $7 million is expected to be recognized in the first quarter (Q1) of fiscal 2026, and substantially all of the remainder will be incurred in the second quarter (Q2) of fiscal 2026.

CrowdStrike clarified that these charges primarily consist of approximately $19 million to $26 million of future cash expenditures related to severance payments, employee benefits, and related costs, and approximately $10 million to $20 million in non-cash charges for stock-based compensation.

The company is expected to post its Q1 earnings after the closing bell on June 3.

During its fourth-quarter earnings, CrowdStrike guided for Q1 revenue in the range of $1.1 billion to $1.106 billion and forecast adjusted earnings per share (EPS) of $0.64 to $0.66.

Wall Street analysts project EPS of $0.66 and revenue of $1.105 billion.

CrowdStrike said in the SEC filing that it expects its Q1 results to align with or surpass its guidance and reaffirmed its forecast for the fiscal year 2026.

Last year, the company was in the news after a faulty software update in July caused worldwide disruptions across various industries.

According to a Bloomberg report, CrowdStrike is also facing investigations in the U.S. over its $32 million deal with Carahsoft Technology Corp.

Meanwhile, shares of CRWD dipped 4% in Wednesday’s pre-market session. The stock has gained over 27% in 2025 and over 41% over the past 12 months.

Also See: Uber Stock Slides Pre-Market As Q1 Revenue Miss Overshadows Upbeat Earnings, Higher Bookings

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