Crowdstrike, the global security titan, has announced it will lay off 500 workers – approximately 5% of its workforce – as part of its “strategic plans” to amass $10 bn in annual recurring revenue, looking to AI.

The company – which made global headlines last summer after a faulty update to its Falcon Sensor security software disrupted a wide range of systems relying on Microsoft, even grounding planes at major airports.

After a lawsuit from shareholders and a $500 million damages suit from Delta, the company is making dramatic changes for the future, planning on investing in AI to streamline its operations.

“We’re operating in a market and technology inflection point, with AI reshaping every industry, accelerating threats, and evolving customer needs,” CEO George Kurtz said in a note to staff.

“To lead at scale, with nearly 10,000 CrowdStrikers and a clear path to $10 billion in ARR, we are evolving how we operate.”

In its strategic plan, the first concrete step appears to be the cut of 500 roles, though the company plans to hire in “key strategic areas” over the year.

These new hires will be centering on product engineering as well as customer facing roles. The firm has not been specific in where they will cut roles, but will begin discussions with affected staff this week.

The company is also making big moves to integrate AI into its systems, with CEO Kurtz saying to staff that “AI is a force multiplier throughout the business.”

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“It streamlines go-to-market, improves customer outcomes, and drives efficiencies across both the front and back office,” he said in the note to staff.

Kurtz also said that market demand – for its NG-SIEM, Identity, Cloud, and Exposure Management – has poised the company for continued growth.

CrowdStrike reported that it last year it had a “record full year operating cash flow of $1.38 billion and record full year free cash flow of $1.07 billion.”