Kaspersky will exit the U.S. market and lay off dozens of employees following a U.S. government ban on its software due to security concerns.
Starting July 20, the Russian cybersecurity firm will begin winding down its U.S. operations, citing the business is no longer viable. Independent journalist Kim Zetter reported that the layoffs will affect fewer than 50 employees.
Sawyer VanHorn, a Kaspersky spokesperson, confirmed the layoffs in an email to TechCrunch, noting he was also part of the layoffs.
Initially, Kaspersky intended to contest the ban, arguing that its activities did not threaten U.S. national security and vowed to explore legal options to maintain its operations and relationships.
However, the U.S. Commerce Department, citing increased security and privacy risks from the Russia-based company, announced in June a “first of its kind” ban on the sale of Kaspersky’s antivirus software to U.S. consumers. U.S. Commerce Secretary Gina Raimondo stated that Russia has the capability and intent to exploit companies like Kaspersky to collect and weaponize Americans’ personal information.
The Impact on U.S. Market and Consumers
The ban will prevent Kaspersky from selling its software directly or through U.S.-based resellers. After September 29, Kaspersky will be unable to provide software or security updates to U.S. customers, leading to degraded antivirus protection. The Commerce Department designed a staggered approach to the ban to give U.S. consumers time to find alternative software.
Additionally, the U.S. Treasury sanctioned several senior Kaspersky executives, preventing U.S. customers from paying for Kaspersky software or engaging with any future company led by these executives. Eugene Kaspersky, the CEO, was not sanctioned.
Historical Actions Against Kaspersky
This move follows previous actions against Kaspersky by both the Trump and Biden administrations. In 2017, the Trump administration banned Kaspersky software from federal government use after Russian hackers stole U.S. classified documents from a contractor’s computer running Kaspersky software. Antivirus products, by nature, have extensive access to devices, which increases the risk of exploitation.
As of Tuesday, Kaspersky’s products were no longer available for purchase on its U.S. website, which now states that its products cannot be purchased from the U.S. for legal compliance reasons.
Featured Image courtesy of Maxim Shemetov/REUTERS
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