Kaspersky to Cease Operations in the US and Dismiss Staff Following Government Prohibition

In the wake of a U.S. government directive issued in June prohibiting the sale of its software due to security concerns, Russian cybersecurity behemoth Kaspersky has announced plans to terminate several positions and exit the American market.

Starting July 20, coinciding with the enforcement of the prohibition, Kaspersky revealed it would commence the “orderly cessation” of its operations in the U.S., stating the company’s operations in the country are “unsustainable.”

Noted independent reporter Kim Zetter was the first to share the development about the firm’s decision to shutter its U.S. operations on Monday. Zetter reported that the workforce reduction would impact “fewer than 50” U.S.-based employees.

Kaspersky’s representative, Sawyer VanHorn, confirmed the decision and job cuts to TechCrunch via an email on Tuesday. VanHorn, who is among those being laid off, confirmed his own redundancy.

Initially, Kaspersky intended to fight the prohibition, arguing upon its announcement that it does not partake in operations harmful to U.S. national defense. The company communicated its determination to explore every legal recourse to maintain its operations and business relationships intact.

The U.S. Department of Commerce outlined the unprecedented prohibition on Kaspersky’s antivirus product sales to U.S. clients in June, pointing to enhanced security and privacy dangers due to the company’s Russian foundations.

“Russia has demonstrated both the ability and willingness to harness Russian businesses such as Kaspersky for gathering and militarizing Americans’ personal data,” stated U.S. Commerce Secretary Gina Raimondo during a press briefing at that time.

With the activation of the ban, Kaspersky will be prohibited from marketing its software to U.S. customers either directly or via America-based distributors, some of whom have expressed dissatisfaction with how the prohibition impacts their operations. Come September 29, Kaspersky will also have to cease deploying software or security enhancements to its U.S. clientele, ultimately compromising the software’s protective capabilities.

The Department of Commerce disclosed that the phased implementation of the ban was to facilitate U.S. customers’ transition to alternative antivirus solutions.

Furthermore, the U.S. Treasury imposed sanctions on several top executives from Kaspersky, effectively preventing U.S. consumers from purchasing its services or engaging with any future ventures led by its officials. Eugene Kaspersky, the CEO, was notably exempt from these sanctions, according to the Treasury.

The U.S. government has taken action against Kaspersky under both the Trump and Biden administrations. The Trump administration in 2017 had already barred Kaspersky software within the federal government following incidents where Russian state hackers reportedly extracted classified U.S. documents from the residence of an intelligence contractor using Kaspersky products.

Antivirus software inherently requires broad, sometimes unrestricted, access to the devices on which they are installed to detect and thwart cyber threats effectively.

As observed by TechCrunch on Tuesday, Kaspersky’s offerings were not available for sale on its American website, which stated: “For legal compliance purposes, Kaspersky products cannot be purchased from your country.”

Now updated to include a statement from Kaspersky.