CrowdStrike makes the case for a 5% workforce reduction to staff; Uber CEO strikes a nerve with employees over new policies
Plus comms teams want leaders to listen more.
Good morning, communicators! Today we’re examining how management relays messages to employees during critical times of change. Here are the top stories and biggest takeaways this week:
- CrowdStrike CEO tells employees job layoffs are due to “technology inflection point.”
Cybersecurity firm CrowdStrike has faced its share of crises in the past year. This week, CEO George Kurtz delivered news that 5% of employees, or about 500 positions, would be eliminated due to restructuring efforts that align with AI.
The memo from Kurtz, shared via Seeking Alpha, blatantly stated that AI was “flattening the hiring curve” and CrowdStrike needs to adjust to the times in order to continue to be innovators in cybersecurity.
From the memo:
“To lead at scale, with nearly 10,000 CrowdStrikers and a clear path to $10 billion in ARR, we are evolving how we operate. We’re building on what works, simplifying execution, and doubling down on our highest-impact opportunities (that include):
- AI investments accelerate execution and efficiency: AI has always been foundational to how we operate…It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office. AI is a force multiplier throughout the business.
- Market demand is driving sustained growth: With multi-billion-dollar market opportunities in areas…we’re poised for continued growth. This evolution furthers our lead as cybersecurity’s platform consolidator, scaled innovator, and ecosystem partner of choice.
- Expanding go-to-market and customer success capacity: We’re scaling our go-to-market and customer success teams to deliver faster time-to-value and stronger outcomes for customers and partners, unlocking the full power of the platform.”
The memo additionally offered outgoing team members a “thanks for your time” and “we’re going to help you through this transition” with resources, severance packages and guidance for the next steps.
Kurtz then reassured employees who will stay on that there would be another announcement in a day or two that lays out a clear path for moving forward in a new direction.
The message is bleak, but it’s honest. Kurtz doesn’t dance around the bottom line and explains the cuts immediately. He then lays out a path forward, both for outgoing employees and those who will remain on the CrowdStrike team.
Communication isn’t always about feeling warm and fuzzy. The honesty with which Kurtz addresses the future of how AI will impact CrowdStrike is imperative. He’s transparent, realistic and shows that sometimes these kinds of moves are necessary without skimping on human compassion.
Language app Duolingo also emphasized the importance of an employee-centered workplace when it, too, shared news about becoming an AI-first business with its staff last week.
- Uber CEO tells employees “It is what it is” after revising benefits, RTO policies.
After an apparent “heated” meeting this week with its employees, Uber CEO Dara Khosrowshahi doubled down on the rideshare company’s newly mandated return-to-office policy for three out of five days as well as changing its paid sabbatical eligibility requirements.
Reported by CNBC, Uber employees pushed back during the all-hands meeting, pressing for more details about the reasons behind the changes.
According to the news outlet, Khosrowshahi told employees:
“If you’re here for a sabbatical and this change causes you to change your mind, it is what it is. I’m sorry about that. The reason we want you to be here is the impact on the company. The learning here. We recognize some of these changes are going to be unpopular with folks. This is a risk we decided to take.
“It has nothing to do in terms of a need to drive attrition or layoffs,” said Khosrowshahi, adding that the changes had nothing to do with cost cutting. “None of that is planned. The business is operating really, really well. But listen, good isn’t good enough for us. We have to be great as a company.”
Some employees allegedly pushed back with unprofessional responses to the changes, and CNBC reported they may be reprimanded for this.
Moving forward, Uber employees may feel shaken by leadership because of the seemingly harsh tone taken during this exchange. They may additionally feel like promises made during the hiring process are being ignored with not much reassurance from Khosrowshahi.
This is a tricky path. Uber executives shared some reasons for the decision, but perhaps if they allowed more input, including employee concerns that its offices did not offer enough space to work adequately, there could have been some other resolution with less tension and a more supportive atmosphere.
- The comms-leadership divide.
The Gallagher 2025 Employee Communications Report, released this month, indicated that 45% of more than 2,000 communicators and employees surveyed want to see more comms leadership coaching.
While some communicators feel they can effectively work with leadership to integrate improved comms strategies, many feel their advice is overlooked.
From the report:
“Poor communication from both managers and leaders appeared in the top five barriers for 2025. So it’s no surprise that 1 in 3 respondents said that leadership comms coaching was a highly important skill to have in 2025.
“While 87% of respondents said that they proactively approach leaders with advice on how to communicate, fewer said that leaders implement their advice.”
It is critical for comms teams and leadership to be on the same page, especially in times of massive change or crisis.
Integrating comms strategies into everyday practices can soothe employee fears during transition, and specifically help improve manager communications, boost leadership productivity and engage effectively with employees with purpose and value.
Download the full copy here.
Courtney Blackann is a communications reporter. Connect with her on LinkedIn or email her at courtneyb@ragan.com.
