Deepwatch layoffs in 2025 affected dozens of employees at the cybersecurity company as management redirected resources toward artificial intelligence and automation. The reductions occurred on November 12, less than two weeks after Deepwatch introduced an agentic AI system to improve security operations.
TechCrunch reported that between 60 and 80 employees lost their jobs, citing a current employee familiar with the decision. Deepwatch confirmed the restructuring but did not provide an exact number.
The company continued expanding its AI capabilities after the layoffs, including opening a technology center in India and appointing new leadership in 2026.
Deepwatch Layoffs 2025: What Happened in November?
Deepwatch confirmed the workforce reduction on November 12, 2025.
In comments to TechCrunch, then-CEO John DiLullo said the company was reorganizing to accelerate investment in AI and automation.
The statement connected the restructuring to Deepwatch’s technology priorities. However, management did not identify which departments were affected or how many positions were eliminated.
An employee familiar with the decision estimated that 60 to 80 workers had been laid off.
TechCrunch also reviewed LinkedIn posts from eight former employees who publicly discussed losing their jobs.
Those accounts confirmed the reductions were underway, but they did not establish a final companywide total.
The announcement was significant because Deepwatch specializes in helping organizations detect cyber threats through a combination of automation and human security expertise.
The decision raised questions about how companies developing AI-based security products plan to organize their workforces.
How Much of Deepwatch’s Workforce Was Affected?
The reported cuts were substantial relative to the company’s estimated size.
TechCrunch cited a workforce of approximately 250 people before the layoffs.
Based on that estimate, the reported loss of 60 to 80 positions would represent approximately 24% to 32% of employees.
Neither the headcount nor the final layoff total was independently confirmed through an official company workforce disclosure.
Deepwatch is privately held and does not publish the same detailed employment information required of many publicly traded companies.
It also did not provide a breakdown by location, department or job title.
As a result, the reported percentage should be understood as an estimate rather than an official measure of the company’s workforce reduction.
Deepwatch Launched Its NEXA AI Platform Before the Cuts
The layoffs followed a major product announcement.
On November 4, 2025, Deepwatch introduced NEXA, an agentic AI ecosystem designed to assist security analysts and customers.
The platform uses AI agents to process security information, help investigate incidents, and provide threat insights.
NEXA combines six agents covering security operations and customer-facing activities.
Its capabilities include analyzing investigation data, reviewing security tickets and helping teams identify gaps in threat detection.
Deepwatch said the system could make complex security information easier to understand and reduce the manual effort involved in investigations.
The company positioned NEXA to improve the productivity of its managed detection and response services.
The launch did not include an announcement that the product would replace a specific number of employees.
However, the company’s subsequent restructuring showed that AI investment had become an important consideration in its staffing decisions.
Did Artificial Intelligence Replace Deepwatch Employees?
Deepwatch linked its layoffs to increased investment in AI and automation, but it did not publicly establish that AI agents directly replaced the eliminated jobs.
That distinction is important.
In cybersecurity, automated systems can help analysts filter alerts, gather evidence, and prioritize suspicious behavior.
Human specialists still interpret complex incidents, assess business risks, and decide how to respond.
Deepwatch’s own product statements emphasize cooperation between security professionals and AI tools.
Its business model combines managed security services with software that helps organizations identify and respond to attacks.
The company did not explain whether its November reductions primarily reflected automation, reduced operating expenses, changes in job responsibilities or a combination of these factors.
Employee accounts reported by TechCrunch also questioned the company’s explanation.
Without additional disclosure, there is insufficient evidence to determine how many positions were eliminated because a particular task could now be automated.
Deepwatch Expanded Its Engineering Operations in India
A notable development followed the November workforce reduction.
On December 2, 2025, Deepwatch announced it was opening a Global Capability Center in Bengaluru, India.
The facility will support AI development, software engineering, and new cybersecurity products.
Deepwatch said it intended to grow the Bengaluru team to more than 100 professionals within 18 months.
The company also announced hiring plans involving engineering, AI research and product development.
The expansion showed Deepwatch reallocating investment toward specific technical capabilities while reducing staffing elsewhere.
However, the announcement did not establish that positions eliminated in November were being transferred directly to India.
It also did not disclose how many U.S. employees were affected or identify equivalent roles being created overseas.
Deepwatch described the facility as a way to accelerate engineering work across time zones and deliver product updates faster.
The company continued to emphasize human expertise alongside automation in its security services.
Brian Dhatt Replaced John DiLullo as CEO in 2026
Deepwatch made another organizational change several months after the layoffs.
On May 4, 2026, the company appointed Brian Dhatt as chief executive.
Dhatt replaced John DiLullo, who had led the company during the November 2025 restructuring.
Deepwatch said DiLullo would remain as an adviser.
The company also promoted Anand Ramanathan, previously chief product and technology officer, to president.
Dhatt had previously served as chief technology officer at BigCommerce and Borderfree.
In announcing the leadership changes, Deepwatch emphasized its ambition to expand autonomous security operations while retaining human oversight.
The company did not directly attribute the CEO transition to the earlier layoffs.
Instead, it presented the appointment as part of the next stage of developing its cybersecurity platform.
Deepwatch Received AI Management Certification in May 2026
The company’s investment in AI continued under its new leadership.
On May 21, 2026, Deepwatch announced ISO/IEC 42001 certification for the AI management system governing its NEXA ecosystem.
The standard addresses how organizations manage risks, responsibilities and controls associated with artificial intelligence.
Deepwatch said the certification supported its approach to transparency, oversight and responsible deployment of automated cybersecurity tools.
The announcement also reflected its continued focus on combining machine-assisted security operations with professional judgment.
Certification does not demonstrate that the November layoffs improved performance or reduced costs.
However, it provides evidence that Deepwatch continued developing its AI products after restructuring its workforce.
Cybersecurity Companies Are Rethinking How They Use AI
Deepwatch was not the only cybersecurity employer to announce reductions during 2025.
Other security businesses, including CrowdStrike and Sophos, made staffing changes during the year.
The reasons differed across companies. Some focused on cost management, while others reorganized teams or redirected investment.
At Deepwatch, management explicitly linked its November restructuring to accelerating investment in AI and automation.
The company continued developing its managed detection and response platform while changing its workforce and leadership.
TechAmerica.ai’s 2025 technology layoffs report tracks other job-cut announcements across the technology industry.
Additional reporting on cybersecurity products and companies is available in TechAmerica.ai’s Security section.
For employees, Deepwatch’s November decision meant dozens of positions were lost at a company promoting AI-assisted security services.
For the business, the layoffs were followed by investment in software development, a new engineering center, and senior management changes.
The confirmed facts remain narrower than the broader debate over automation: Deepwatch acknowledged layoffs and cited AI investment as a factor, while the 60-to-80 figure came from employee accounts. The company has not published a verified final total or established how many jobs AI directly replaced.
