Russian cybersecurity company Kaspersky has announced plans to exit the U.S. market and lay off employees following a U.S. government ban on its software due to security concerns. The ban will take effect on July 20, 2024, making Kaspersky’s operations in the United States no longer viable.
Kaspersky to Cease U.S. Operations
Kaspersky plans to “gradually wind down” its U.S. operations starting on July 20. The company’s decision follows a U.S. government order issued in June, which prohibits the sale of Kaspersky’s software in the United States, citing security risks associated with its Russian headquarters.
Impact on Employees
Independent journalist Kim Zetter was the first to report on the company’s decision to close its U.S. business. According to Zetter, fewer than 50 employees in the United States will be affected by the layoffs. Kaspersky spokesperson Sawyer VanHorn confirmed the layoffs in an email to TechCrunch on Tuesday, stating that he is among those impacted.
Initial Challenge to the Ban
Kaspersky initially intended to challenge the ban, asserting that it “does not engage in activities which threaten U.S. national security” and intended to “pursue all legally available options to preserve its current operations and relationships.”
Details of the U.S. Government Ban
The U.S. Commerce Department announced the unprecedented ban in June, highlighting increased security and privacy risks due to Kaspersky’s ties to Russia. U.S. Commerce Secretary Gina Raimondo stated that “Russia has shown it has the capacity, and even more than that, the intent to exploit Russian companies like Kaspersky to collect and weaponize the personal information of Americans.”
Once the ban is enforced, Kaspersky will be prohibited from selling its software directly to U.S. consumers or through U.S.-based resellers. Some resellers have expressed concerns about the impact on their businesses. After September 29, Kaspersky will also be unable to provide software or security updates to U.S. customers, potentially compromising their antivirus protection.
Reaction from the U.S. Treasury
The U.S. Treasury has sanctioned several senior Kaspersky executives, preventing U.S. customers from transacting with them. However, Kaspersky’s CEO Eugene Kaspersky has not been sanctioned.
Historical Context
The U.S. government’s actions against Kaspersky date back to the Trump administration. In 2017, the Trump administration banned the use of Kaspersky software across federal government systems after Russian hackers allegedly stole classified documents from an intelligence contractor’s computer running Kaspersky software.
Current Status
As of Tuesday, Kaspersky’s products are no longer available for purchase on its U.S. website. The site displays a message stating, “For legal compliance purposes, Kaspersky products cannot be purchased from your country.”
FAQ
Why is Kaspersky exiting the U.S. market?
Kaspersky is exiting the U.S. market due to a U.S. government ban on its software, citing security risks associated with the company’s Russian headquarters.
When will the ban take effect?
The ban will take effect on July 20, 2024.
How many employees will be affected by the layoffs?
Fewer than 50 employees in the United States are expected to be affected by the layoffs.
What will happen to Kaspersky’s software updates for U.S. customers?
After September 29, 2024, Kaspersky will no longer be able to provide software or security updates to U.S. customers, potentially compromising their antivirus protection.
Has Kaspersky faced similar actions from the U.S. government before?
Yes, the U.S. government previously banned the use of Kaspersky software across federal systems in 2017 during the Trump administration.
