Why Did Cybersecurity Firm Deepwatch Lay Off Dozens?
Cybersecurity firm Deepwatch lays off dozens of employees as part of a major restructuring aimed at accelerating its AI investment and automation strategy. The company, known for its AI-driven threat detection and response platform, confirmed that the move will “align operations to strengthen future innovation in cybersecurity.” Sources report between 60 and 80 staff were affected, marking a significant shift for the mid-sized firm with around 250 employees.
How Is Deepwatch Planning to ‘Accelerate’ AI Investment?
Deepwatch’s leadership says the layoffs are part of a plan to double down on artificial intelligence and automation tools. CEO John DiLullo explained that the company aims to boost efficiency and enhance its AI capabilities across its managed security services. While the pivot reflects growing industry trends, some insiders have expressed skepticism about whether the company’s AI initiatives will genuinely transform its operations or merely serve as a cost-cutting measure.
Are Other Cybersecurity Companies Facing Similar Layoffs?
Yes — Deepwatch joins a growing list of cybersecurity firms reducing staff in 2025. Major players like CrowdStrike, Deep Instinct, and Sophos have also implemented layoffs this year, citing restructuring and AI integration. Despite record profits, these companies appear focused on reallocating resources toward AI-driven products, highlighting a sector-wide shift toward automation and advanced analytics.
What Does This Mean for the Future of Cybersecurity Jobs?
The Deepwatch layoffs underscore a broader trend: AI is rapidly reshaping cybersecurity roles. While automation promises faster response times and improved threat prediction, it also raises questions about job displacement in tech. Experts suggest future cybersecurity careers will require stronger AI literacy, as companies like Deepwatch invest heavily in machine learning models and agentic AI systems to stay competitive.
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