SentinelOne announced on May 28, 2026, it would lay off roughly 8% of its workforce to increase investments in artificial intelligence, data, and cloud computing, impacting over 240 employees out of more than 3,000 as of April 2026 [1, 2]. CEO Tomer Weingarten described the cuts as "not a reactive measure, it is a deliberate evolution to reduce complexity, raise the performance bar, and build a leaner, more agile SentinelOne" [2].
The move follows recent team restructuring and productivity gains tied to greater AI use within the company [2]. SentinelOne expects a one-time charge of $25 million related to the layoffs, filed on May 29 [2]. The announcement led to a 12% drop in SentinelOne's stock price, reflecting investor concerns [2].
The company forecasted Q2 2026 revenue between $289 million and $291 million, slightly below analysts' consensus of $292 million [2]. The full-year revenue outlook is $1.195 billion to $1.205 billion, also below the $1.21 billion consensus [2].
The layoffs are part of a strategic effort to reduce complexity and enhance overall performance while shifting more resources toward AI and cloud investments, according to Weingarten. The company aims to build a more agile operation for the competitive cybersecurity market [2].
