SentinelOne laid off 8% of its full-time workforce and issued quarterly revenue guidance below analyst expectations on Thursday. The cybersecurity company’s shares fell 8% following the announcement.
SentinelOne had over 3,000 employees at the end of April, meaning the reduction affected approximately 240 workers. In a securities filing, the company said it expects to record a one-time $25 million charge related to the layoffs.
CEO Tomer Weingarten told analysts on the earnings call Thursday, “This is not a reactive measure, it is a deliberate evolution to reduce complexity, raise the performance bar, and build a leaner, more agile SentinelOne.” He added that over the last few months, the company has restructured its teams and already seen “meaningful productivity gains from ramped AI use.”
SentinelOne forecast current-quarter revenue between $289 million and $291 million, slightly below the $292 million projected by LSEG analysts. The company also reiterated its full-year revenue outlook of $1.195 billion to $1.205 billion, which falls short of the $1.21 billion forecast by analysts. Analysts at Morgan Stanley wrote, “Combined with growing criticalness of category, this should have been a Q where it sustained recent gains; lack of material guidance raise leaves in holding pattern.”
Some cybersecurity stocks have sold off this year, getting swept up in broader market fears that new AI tools will displace software businesses. Cybersecurity companies are navigating an inflection point, spurred by advances such as Anthropic's Mythos model and the emergence of autonomous AI agents capable of exploiting vulnerabilities faster than ever before.