Layoffs Follow Deepwatch’s Push Into AI-Led Security Operations

Deepwatch, a cybersecurity company focused on managed detection and response, has laid off between 60 and 80 employees, affecting nearly a third of its staff. The reduction comes as the company launches NEXA, an AI-based platform designed to change how analysts and clients interact with threat data and response tools.

The company described the layoffs as part of a plan to put more resources into automation and artificial intelligence. CEO John DiLullo said the organization is being realigned to speed development in these areas.

While the introduction of NEXA highlights that direction, internal reactions have varied, with some employees expressing uncertainty about how the changes will play out.

Why It Matters: Security providers are under pressure to handle growing threat volumes, deliver on client expectations, and manage costs. Many are turning to automation as part of that effort. Deepwatch’s recent staff reduction, announced alongside the launch of an AI platform, shows how some companies are reworking their operations with new technology.

• A Major Cut in Workforce Size: Deepwatch’s layoffs affected between 60 and 80 employees, or about 24% to 32% of its staff. The estimate was shared by a current employee and reflected in LinkedIn posts from several individuals who said they had been let go. No performance-related explanation was given for the reductions, and they appear to have affected different parts of the organization.

• NEXA: New AI Tools for Security Teams and Customers: Alongside the layoffs, Deepwatch introduced NEXA, a software platform built around six AI agents. Three support analysts with investigation and containment, and the others focus on customer needs such as identifying threat exposure and reviewing ticket data. The platform lets users work with real-time data in plain language and is meant to simplify decision-making across teams.

• Internal Responses Reflect Mixed Impressions: A current Deepwatch employee, speaking anonymously to TechCrunch, expressed doubt about the company’s AI focus, describing the initiative as unclear and questioning how automation would actually function in day-to-day operations. While the company has outlined NEXA as a major step forward, the employee’s comments suggest that not everyone inside the organization is yet convinced of the platform’s immediate impact or purpose.

• Part of an Ongoing Industry Trend: Deepwatch is one of several cybersecurity firms that have reduced staff in 2025. Earlier this year, CrowdStrike laid off 500 employees while reporting strong financial results, including over $1 billion in free cash flow. Other companies such as Deep Instinct, Otorio, ActiveFence, SkyBox Security, and Sophos have also announced cuts. These moves display a wider focus on automation and changes in how companies structure their security operations.

• Focus Now Turns to Execution: Many of the affected roles were in operations and security analysis, teams that handle continuous threat monitoring and incident response. As Deepwatch moves forward with a smaller team and increased use of automation, its ability to maintain service levels will be closely observed. The introduction of NEXA brings new tools intended to support both analysts and clients, and its performance in real-world use will offer a clearer view of the platform’s role in day-to-day operations.

Go Deeper -> Cybersecurity firm Deepwatch lays off dozens, citing move to ‘accelerate’ AI investment – TechCrunch

Deepwatch Cuts 80 Jobs to Fund AI Push Amid Cybersecurity Shakeup – The Tech Buzz

Deepwatch Launches NEXA™: The MDR Industry’s First Collaborative Agentic AI Ecosystem for Unparalleled Security Outcomes – Business Wire