Cyber firm SentinelOne set to lay off hundreds of employees
Wall Street-listed company expected to announce cuts alongside earnings report.
The wave of layoffs in the high-tech sector is intensifying. Calcalist has learned that cybersecurity company SentinelOne is also preparing for layoffs and is expected to announce the move in its financial statements, which are scheduled to be published tonight (Thursday) after the close of trading on Nasdaq. The company, which is traded on Wall Street at a valuation of approximately $6 billion, employs around 3,000 people globally. SentinelOne declined to comment.
According to estimates, the layoffs will affect approximately 10% of the workforce, or around 300 employees. SentinelOne employs roughly 700 people in Israel, meaning about 70 employees in the country could be affected.
SentinelOne is not a classic example of the layoffs currently sweeping software companies, as it operates in the cybersecurity sector, which has remained relatively resilient in recent months, and its stock has surged since the beginning of the year. The strengthening shekel is also less significant in its case because most of the company’s employees are based outside Israel, while its local development center employs only a few hundred people.
The reasons behind the layoffs appear to be tied more closely to the company’s own business challenges, particularly intense competition from rivals such as Palo Alto Networks and CrowdStrike.
A year ago, SentinelOne acquired Israeli startup Prompt Security for an estimated $250 million in order to add AI capabilities to its endpoint security solutions. Last December, the company’s CFO Barbara Larson departed after just one year in the role, and in March 2026 she was replaced by Sonalee Parekh, who brings extensive experience from senior finance roles at public software companies. More recently, the company also replaced its chief marketing and revenue officers.
In its most recent financial results, SentinelOne continued to post growth and surpassed the $1 billion annual revenue mark for the first time. However, profitability weakened slightly, a factor that may have contributed to the decision to cut approximately 10% of the workforce.
Tonight, the company is expected to report quarterly revenue of $276 million-$278 million, alongside positive operating income before accounting-related and one-time expenses. For the full year, SentinelOne is forecasting approximately 20% revenue growth to around $1.2 billion, along with non-GAAP operating profit of $110 million-$120 million.
