This photo shows the SentinelOne logo at the 18th edition of the international cybersecurity event “InCyber” Forum, held at the Grand Palais in Lille, northern France, on April 1, 2026.
Samir Aldumy | AFP | Getty Images
sentinel one The stock fell 6% as the cybersecurity company laid off 8% of its full-time employees to focus on artificial intelligence and data investments.
“This is not a reactive measure, but an intentional evolution to reduce complexity, raise the bar for performance, and build a leaner, more agile SentinelOne,” CEO Tomer Weingarten told analysts on an earnings call Thursday.
He said SentinelOne has restructured its team over the past few months and is already seeing “significant productivity gains” from increased use of AI.
The company said in a securities filing that it expects to incur a one-time charge of $25 million related to the layoffs. The number of employees at the company exceeded 3,000 as of the end of April.
Tech companies are cutting headcount as AI forces companies to reallocate resources to keep pace with innovation. New AI tools also allow businesses to automate workloads.
Earlier this week, Israeli-based web development company Wix cut a fifth of its workforce, citing AI and the high value of the Israeli shekel. Cisco cut its workforce by nearly 5% earlier this month, and Mr. Block cut his workforce by about half in February. Software company Atlassian cut about 1,600 jobs in March.
SentinelOne’s job cuts come alongside a lackluster outlook for the current quarter and full year.
The company said it expects sales to be between $289 million and $291 million, compared to LSEG analysts’ expectations of $292 million. Sentinel One reiterated its full-year forecast for sales of $1.195 billion to $1.25 billion. It fell short of the expected $1.21 billion.
“Combined with heightened category criticality, this should have been the Q that sustained recent gains. The lack of material guidance could disrupt the holding pattern,” Morgan Stanley analysts said.
Cybersecurity companies are in the midst of a major transformation, fueled by Anthropic’s Mythos model and the rise of autonomous AI agents that can exploit vulnerabilities faster than ever before. As a result, businesses need to expand their security defenses and invest in new tools.
At the same time, some cybersecurity stocks sold off this year, driven by broader market concerns about new AI tools displacing the software business.
