Deepwatch Cuts 80 Jobs to Fund ‘AI-Led’ Security Shift

Cybersecurity firm Deepwatch eliminated roughly one-third of its workforce on November 12, cutting between 60 and 80 jobs to finance a pivot toward artificial intelligence. The move signals a sharp transition for the managed detection and response (MDR) vendor, which is replacing human-led security operations with its new "NEXA" automated platform.

Key Facts

• Impact: 60–80 employees (approx. 32% of staff).
• Primary Driver: Funding the rollout of "NEXA," an AI platform using six specialized agents for threat detection.
• Leadership: CEO John DiLullo described the move as an organizational alignment to speed up automation investments.
• Source: TechBuzz
• Additional Context: National CIO Review

The AI Pivot

The cuts are directly tied to the launch of NEXA, a new software architecture the company claims will change how clients interact with threat data. Deepwatch has historically relied on human security analysts to monitor networks 24/7. This new strategy bets heavily on software to do that work cheaper and faster.

In a note regarding the changes, CEO John DiLullo stated the company is "aligning our organization to accelerate our significant investments in AI and automation." The restructuring hits the security operations center (SOC) hardest—the very department responsible for the "human element" of their service.

Analyst vs. Algorithm

This reduction follows a volatile period for Deepwatch. After raising significant capital in 2023, the company has struggled to maintain headcount growth. Employees impacted by this round include security analysts and support staff, many of whom were notified immediately via internal channels.

Insiders suggest the shift to NEXA is a high-risk move. While the company markets the tool as a way to fix "signal-to-noise" problems in data logs, replacing a third of the workforce raises questions about service capacity during the transition.

Sector Context

Deepwatch is not alone in cutting staff despite a growing market for cyber defense. The move mirrors a similar cut at CrowdStrike earlier this year, where the giant cut 500 roles to streamline operations. The trend is clear: security firms are using the promise of AI automation to justify cutting expensive human labor, even as threat levels rise globally.