Russian cybersecurity giant Kaspersky is set to shutter its U.S. operations and lay off staff following a U.S. government ban on its software sales due to security concerns.
The company announced plans to gradually wind down its U.S. business starting July 20, coinciding with the ban’s implementation, citing the market’s non-viability under the new regulatory environment.
Independent journalist Kim Zetter first reported on Monday that Kaspersky would close its U.S. operations, affecting fewer than 50 employees in the country. The company’s spokesperson, Sawyer VanHorn, confirmed the layoffs and the company’s decision to exit the U.S. market in an email to TechCrunch on Tuesday.
Initially, Kaspersky intended to challenge the ban, emphasizing it did not engage in activities threatening U.S. national security and vowing to explore legal avenues to maintain its operations and partnerships.
In June, the U.S. Commerce Department imposed a landmark ban prohibiting Kaspersky from selling its antivirus software to American consumers. The decision was based on heightened risks to security and privacy attributed to the company’s Russian headquarters. Commerce Secretary Gina Raimondo underscored concerns over Russia’s potential exploitation of companies like Kaspersky for gathering and weaponizing personal data of Americans.
Effective September 29, Kaspersky will be prohibited from distributing software updates or security patches to U.S. customers, potentially compromising their antivirus protection.
The Commerce Department adopted a phased approach to the ban, allowing consumers time to transition to alternative cybersecurity solutions. Additionally, the U.S. Treasury sanctioned several senior Kaspersky executives, preventing U.S. customers from engaging in financial transactions with the company or any future ventures led by its executives. Notably, CEO Eugene Kaspersky was not among those sanctioned.
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This move marks the latest in a series of U.S. government actions against Kaspersky spanning administrations. In 2017, the Trump administration prohibited federal agencies from using Kaspersky software after Russian hackers breached a contractor’s computer containing classified U.S. documents, which was protected by Kaspersky software.
As of Tuesday, Kaspersky’s products were unavailable for purchase on its U.S. website, with a message citing legal compliance reasons for the restriction.
The company’s exit from the U.S. market underscores the ongoing tensions between the U.S. and Russia over cybersecurity issues and the significant impact on multinational tech companies caught in geopolitical disputes.
