AI-Driven Layoffs: Cybersecurity Firm Deepwatch Cuts Jobs to Focus on AI Investment (2025)

In a move that's sending ripples through the cybersecurity world, Deepwatch, a firm specializing in AI-driven detection and response, has recently announced significant layoffs. This decision, revealed on November 12, 2025, has sparked both concern and curiosity about the future of cybersecurity and the role of AI within it.

Deepwatch's CEO, John DiLullo, explained to TechCrunch that the company is "aligning our organization to accelerate our significant investments in AI and automation." This suggests a strategic shift, prioritizing AI capabilities.

But here's where it gets controversial... According to sources, including a current Deepwatch employee who preferred to remain anonymous, the layoffs affected between 60 and 80 employees out of a workforce of approximately 250. One former employee even mentioned 80 people being laid off in a LinkedIn post.

Adding fuel to the fire, one employee expressed skepticism, calling the AI-related explanations "bullshit."

This raises the question: Are these layoffs truly about embracing AI, or is there more to the story?

It's important to note that Deepwatch isn't alone. The cybersecurity industry has seen other companies making similar moves. For example, Crowdstrike, a major player in the field, laid off around 500 workers in May, representing 5% of its workforce, despite a financially successful year with substantial operating and free cash flow. Other companies like Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos have also reduced their workforce this year.

This trend prompts us to consider: Is the cybersecurity landscape undergoing a major transformation, or are these layoffs a symptom of something else?

What do you think about Deepwatch's decision and the broader trend of layoffs in the cybersecurity industry? Share your thoughts in the comments below. Do you see AI as a driver of innovation or a potential disruptor in this field?

AI-Driven Layoffs: Cybersecurity Firm Deepwatch Cuts Jobs to Focus on AI Investment (2025)
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