Deepwatch makes up to 80 layoffs amid technology overhaul

Cybersecurity firm Deepwatch has laid off as many as 80 employees in a restructuring designed to accelerate investment in artificial intelligence and automation, TechCrunch reported.

Chief executive John DiLullo told the outlet that the company was reshaping its organisational structure to support deeper investment in AI-driven capabilities and to improve operational efficiency. He described the move as part of a broader push to strengthen the firm’s technology platform.

A current employee, speaking anonymously because they were not authorised to discuss internal matters, said the cuts affected between 60 and 80 workers from a staff of roughly 250. A LinkedIn post from another individual who said they were part of the layoffs also cited 80 departures. Since the announcement, several former employees have publicly confirmed on LinkedIn that they were among those impacted.

Deepwatch, known for its AI-enabled threat detection and response products, is the latest cybersecurity company to restructure amid shifting market conditions and rising investment demands in advanced automation. The sector has seen a string of layoffs this year despite strong demand for security tools.

CrowdStrike cut around 500 roles earlier this year — about 5% of its workforce — even as it delivered record operating cash flow and free cash flow, TechCrunch reported. Other firms, including Deep Instinct, Otorio, ActiveFence, SkyBox Security and Sophos, have also reduced headcount in recent months.

Deepwatch has not disclosed details of the specific AI initiatives it intends to pursue. DiLullo said only that the organisational changes were necessary to prepare the company for its next phase of technology-led growth, suggesting further investment in automation and machine learning will shape its future product strategy.