In the fast-evolving world of cybersecurity, where threats multiply as quickly as defenses, Tampa-based firm Deepwatch has made a bold move. On November 12, 2025, the company announced layoffs affecting dozens of employees, framing the cuts as a strategic pivot to ramp up investments in artificial intelligence and automation. This decision, revealed through internal communications and confirmed by CEO Charlie Thomas, underscores a broader industry trend where firms are betting big on AI to stay ahead of increasingly sophisticated cyber threats.

Deepwatch, known for its managed detection and response (MDR) services, has positioned itself as a leader in blending human expertise with AI-driven tools. The layoffs, estimated to impact between 60 and 80 workers according to sources, come amid a wave of similar actions across the sector. As Thomas explained in an email to TechCrunch, the restructuring allows the company ‘to accelerate investments in AI and automation’ while maintaining a lean operation.

A Wave of Industry Layoffs

This isn’t an isolated incident. Cybersecurity giants like CrowdStrike laid off around 500 workers in May 2025, despite record financial performance, as reported by TechCrunch. Other firms, including Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos, have also trimmed staff this year. The pattern suggests a sector-wide shift toward efficiency through technology, with AI promising faster threat detection and response without expanding headcounts.

Posts on X (formerly Twitter) reflect growing sentiment about these changes. Users have highlighted over 118,000 tech jobs cut in 2025, with specific mentions of Deepwatch’s moves as part of a larger ‘AI investment’ narrative. One post from DailyJobCuts.com noted, ‘Crazy how many companies all at the same time doing Layoffs due to.. AI,’ capturing the skepticism and frustration in the industry.

Deepwatch’s Strategic Evolution

Founded in 2019, Deepwatch has grown rapidly, securing $180 million in funding in 2023 to fuel product development and partnerships, according to Crunchbase News. Just last month, on October 9, 2025, the company was honored as the ‘Managed Security Solution of the Year’ in the 2025 CyberSecurity Breakthrough Awards, as announced by Businesswire. This accolade praised its Precision MDR platform, which combines AI with human oversight for proactive threat management.

However, the recent layoffs signal a deeper transformation. A current employee, speaking anonymously to TechCrunch, expressed doubts: ‘They’re doing something with AI and agentic AI but it sounds like bullshit.’ This internal skepticism highlights the challenges of transitioning to AI-centric models, where promises of innovation must contend with real-world implementation hurdles.

Broader AI-Driven Disruptions in Tech

The tech sector at large is grappling with similar dynamics. CNBC reported on October 22, 2025, that Meta’s acquisitions of AI startups have led to layoffs rather than windfalls for many employees. A separate CNBC piece from November 4, 2025, discussed ‘AI-washing’ amid massive job cuts at companies like Amazon, Target, and UPS, emphasizing that these reductions stem from deeper cost-cutting strategies beyond just AI hype.

Global figures paint a stark picture: Over 1.1 lakh tech jobs lost in 2025 as AI reshapes roles, per BusinessToday on November 2, 2025. Tech giants like Microsoft, Intel, and Amazon are prioritizing AI investments, with Intel cutting 31% of its workforce and Microsoft slashing 19,000 positions, as noted in X posts from users like Amanda Goodall and India & The World.

Cybersecurity’s AI Imperative

In cybersecurity specifically, AI is seen as a game-changer for handling the deluge of threats. Mezha reported on November 12, 2025, that Deepwatch’s cuts aim to boost AI-driven threat detection, aligning with industry trends. Biztoc echoed this, quoting Thomas on accelerating AI investments to enhance automation.

Experts argue that AI can analyze vast datasets in real-time, identifying anomalies that human analysts might miss. Yet, as Peter H. Diamandis posted on X on October 20, 2025, ‘800,000 layoffs in 2025. 10,000 in September alone tied to AI,’ framing it as a ‘new gold rush’ for those adapting to build with AI rather than against it.

Employee Perspectives and Market Reactions

Laid-off employees have shared mixed reactions. One former worker told TechCrunch that the layoffs were communicated via a brief all-hands meeting and email, with affected staff given just 30 minutes to process the news before system access was revoked. Another described the process as abrupt, learning of their termination during a routine check-in call.

Market watchers are monitoring how these changes affect Deepwatch’s trajectory. With prior funding rounds valuing the company highly, the pivot to AI could position it for growth in a market projected to reach $376 billion by 2029, according to industry analyses. However, the human cost raises questions about talent retention in a field already facing shortages.

Navigating the Human-AI Balance

Deepwatch’s award-winning platform emphasizes ‘AI + humans,’ but the layoffs suggest a tilt toward automation. Morningstar republished the Businesswire announcement, highlighting how the company’s approach delivers ‘precision outcomes’ through integrated tech and expertise.

Industry insiders, as seen in X discussions, warn of potential pitfalls. Brian Rose of London Real noted on September 7, 2025, that over 100,000 tech workers were laid off as companies shift to AI, including at Amazon, Microsoft, and Meta. This echoes a Barchart story from November 12, 2025, on how AI is changing the game in cybersecurity stocks.

Future Implications for the Sector

As Deepwatch accelerates its AI investments, competitors are likely to follow suit. The company’s moves could inspire similar restructurings, potentially leading to a more automated, efficient industry—but at what cost to jobs and innovation?

Ultimately, the success of this strategy will depend on balancing technological advancement with human insight, ensuring that AI enhances rather than replaces the critical thinking needed to combat evolving cyber threats.