In a significant shift in the cybersecurity landscape, Russian cybersecurity firm Kaspersky is set to lay off dozens of employees and exit the U.S. market. This move follows a U.S. government order issued in June that banned the sale of Kaspersky’s software, citing national security risks.
Effective July 20, Kaspersky will begin to “gradually wind down” its operations in the United States. The company stated that its U.S. business is “no longer viable” due to the government ban. This announcement marks a notable retreat for Kaspersky, a once-prominent player in the American cybersecurity market.
Independent journalist Kim Zetter first reported the news of Kaspersky’s shutdown in the U.S., noting that fewer than 50 employees would be affected by the layoffs. This figure was confirmed by Kaspersky spokesperson Sawyer VanHorn, who also disclosed that they were among those laid off.
Kaspersky had initially planned to contest the ban, asserting that it did not engage in activities that threatened U.S. national security. The company vowed to explore all legal avenues to maintain its operations and relationships in the U.S. However, the U.S. Commerce Department’s decisive action in June, which introduced the “first of its kind” ban on Kaspersky’s antivirus software, left the company with little choice but to comply.
The U.S. government cited increased security and privacy risks due to Kaspersky’s Russian headquarters as the primary reason for the ban. U.S. Commerce Secretary Gina Raimondo emphasized that Russia has both the capacity and intent to exploit companies like Kaspersky to collect and weaponize the personal information of Americans.
Starting from July 20, Kaspersky will no longer be able to sell its software directly to U.S. consumers or through U.S.-based resellers. This restriction has drawn criticism from some resellers who argue that the ban negatively impacts their businesses. Furthermore, after September 29, Kaspersky will not be allowed to push software or security updates to U.S. customers, leading to potentially degraded protection from its antivirus software.
To mitigate the disruption, the Commerce Department implemented a staggered approach to the ban, providing U.S. consumers with time to transition to alternative cybersecurity solutions.
In addition to the Commerce Department’s actions, the U.S. Treasury has sanctioned several senior Kaspersky executives, effectively preventing U.S. customers from purchasing Kaspersky software or engaging in transactions with any future companies led by these executives. Notably, Kaspersky’s CEO, Eugene Kaspersky, was not among those sanctioned.
The U.S. government’s actions against Kaspersky are not new. In 2017, the Trump administration prohibited the use of Kaspersky software across the federal government following an incident in which Russian government hackers stole classified documents from a U.S. intelligence contractor’s home computer that was running Kaspersky software.
Given the nature of antivirus products, which require broad access to devices to identify and neutralize cyber threats, the security concerns surrounding Kaspersky’s software are particularly acute. This level of access makes any potential misuse of the software by hostile entities especially dangerous.
As of Tuesday, Kaspersky’s products were no longer available for purchase on its U.S. website. A message on the site reads, “For legal compliance purposes, Kaspersky products cannot be purchased from your country.”
Kaspersky’s departure from the U.S. market underscores the complex interplay between cybersecurity, geopolitics, and national security. As the company winds down its operations, U.S. consumers and businesses will need to seek alternative solutions to safeguard their digital environments.
