SentinelOne stock drops after lackluster guidance, layoffs
This photo shows the SentinelOne logo at the 18th edition of the “InCyber” Forum, an international cybersecurity event held at the Grand Palais in Lille, northern France, on April 1, 2026.
Sameer Al-doumy | Afp | Getty Images
SentinelOne Cyber security company shares lost 8 percent in value 8% were laid off Focusing the full-time workforce on AI and data investments.
“This is not a reactive measure, but a deliberate evolution to reduce complexity, raise the performance bar and create a leaner, more agile SentinelOne,” CEO Tomer Weingarten told analysts on Thursday’s earnings call.
He said that over the past few months, SentinelOne has restructured its teams and seen “meaningful productivity” gains from increased use of AI.
One securities filingThe company said it expects a one-time charge of $25 million related to the layoffs. As of the end of April, the company had more than 3,000 employees.
Tech companies are increasingly reducing headcount as AI forces businesses to reallocate resources to keep up with innovation. New AI tools also enable businesses to automate workloads.
Earlier this week, Israel-based web developer Wix laid off a fifth of its workforce due to the power of artificial intelligence and the Israeli shekel. Cisco made it smaller number of employees increased by almost 5% Earlier this month, Block cut its workforce roughly in half in February. Software company Atlassian laid off nearly 1,600 people in March.
SentinelOne’s workforce cuts also come alongside weak guidance for the current quarter and full year.
The company said it expects revenue of $289 million to $291 million, versus the $292 million expected by LSEG analysts. SentinelOne reiterated its full-year outlook, saying it expects revenue between $1.195 billion and $1.205 billion. This fell short of the $1.21 billion estimate.
“Coupled with the category’s increasing criticality, this should have been a Q in which recent gains were sustained; the lack of material guidance increases the tendency to hold,” analysts at Morgan Stanley wrote.
Cybersecurity companies are in the midst of a significant shift spurred by Anthropic’s Mythos model and the rise of autonomous AI agents that can exploit vulnerabilities faster than ever before. This is forcing businesses to scale their security defenses and invest in newer tools.
At the same time, some cybersecurity stocks have sold off this year, caught up in broader market fears that new artificial intelligence tools will replace software companies.
