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SentinelOne cuts 8% workforce to boost AI focus, shares drop 12% on weak revenue outlook

Market News
29 May 2026
CNBC
View Source
Bearish
pluang ai news

SentinelOne announced it will reduce its full-time workforce by 8% to prioritize investments in artificial intelligence and data, causing its shares to fall 12%. CEO Tomer Weingarten described the layoffs as a strategic move to streamline operations and enhance performance, not a reaction to market pressures. The company expects a one-time $25 million charge from the layoffs and provided revenue guidance below analyst expectations for both the current quarter and full year. This move aligns with broader tech industry trends where companies like Wix, Cisco, and Block are also cutting jobs to reallocate resources toward AI innovation.

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