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SentinelOne announced a restructuring plan cutting approximately 8% of its full-time workforce on Wednesday, as the cybersecurity company reported first-quarter revenue that fell short of expectations and issued guidance that disappointed investors.
SentinelOne stock fell roughly 12%, according to CNBC, after the results were released. The company reported adjusted revenue of $276.7 million for the quarter ended April 30. Analysts had expected $277.38 million, according to Yahoo Finance. Adjusted earnings came in at $0.04 per share, ahead of the $0.02 per share analysts had anticipated.
According to the company, the restructuring is aimed at sharpening focus on AI, data, cloud, and endpoint security while streamlining operations. The associated costs are estimated at around $25 million in total, with cash outlays accounting for roughly $15 million of that figure, the company said. SentinelOne said it anticipates wrapping up the bulk of the restructuring work by the end of its fiscal second quarter of 2027.
"This is not a reactive measure, it is a deliberate evolution to reduce complexity, raise the performance bar, and build a leaner, more agile SentinelOne," CEO Tomer Weingarten told CNBC on the earnings call. The company had more than 3,000 employees at the end of April, according to CNBC.
