Deepwatch, Axonius Carry Out Steep Layoffs Amid Surge in AI

MDR, Asset Management Startups Reportedly Ax Double-Digit Percentage of Employees Michael Novinson (MichaelNovinson) • November 13, 2025

Two late-stage cybersecurity startups disclosed widespread layoffs this month, reportedly axing a double-digit percentage of their staffs amid economic and artificial intelligence-related upheavals.

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Managed detection and response vendor Deepwatch reportedly cut between 60 and 80 people from its 250-person staff Wednesday, TechCrunch reported, citing a need to align the organization to accelerate investments in AI and automation. And surging asset management vendor Axonius last week laid off just under 100 people, or approximately 11% of its workforce, to sharpen the company's focus.

"As we continue to evolve, Deepwatch is aligning our organization to accelerate our significant investments in AI and automation," Deepwatch CEO John DiLullo wrote in a statement emailed to Information Security Media Group. The company ...