SentinelOne Cuts 8% of Staff as Shares Sink 12% on Weak Revenue Outlook

3 articles · Updated · CNBC · May 29

SentinelOne said it will lay off 8% of its full-time workforce — roughly 240 jobs based on more than 3,000 employees in April — and take a one-time $25 million charge.
Shares fell 12% after the cybersecurity company paired the cuts with soft guidance, forecasting current-quarter revenue of $289 million to $291 million versus analysts' $292 million estimate.
Full-year revenue guidance of $1.195 billion to $1.205 billion also trailed the $1.21 billion consensus, reinforcing investor concern even though the company reiterated its outlook.
CEO Tomer Weingarten said the move is meant to simplify operations and redirect resources to AI and data investments after internal restructuring and AI-driven productivity gains.
The cuts fit a broader tech pattern as companies use AI to automate work and reallocate spending; Wix, Cisco, Block and Atlassian have all reduced headcount in recent months.

Is AI the real driver of tech layoffs, or a convenient excuse for companies to cut costs?

As AI automates security tasks, will human experts become more valuable or simply obsolete?