Kaspersky Lab announced Monday that it will begin winding down its U.S. operations next month, laying off U.S.-based employees following a recent Commerce Department ban.
The closure of Kaspersky's U.S. office marks the end of a prolonged dispute between the Russian antivirus firm and the U.S. government. Once a favoured vendor for government contracts and sponsor of high-profile events in Washington, D.C., the company has faced increasing scrutiny and restrictions.
The Commerce Department's ban prohibits new installations of Kaspersky Lab's antivirus software starting July 20, and existing U.S. customers will no longer receive product updates after September 29. This decision follows Kaspersky's earlier commitment to challenge the ban. Still, the company has ultimately decided to cease its U.S. operations due to the new legal constraints.
Journalist Kim Zetter reported the news, revealing that U.S. employees were informed of their layoffs this week. In a statement, Kaspersky expressed its regret over the decision, citing the impracticality of continuing business in the U.S. under the current legal conditions.
"Kaspersky has been operating in the U.S. for close to 20 years, contributing to the nation's strategic cybersecurity goals by safeguarding organizations and individuals in the country from ever-evolving cyber threats," the company stated.
Despite shutting down its U.S. operations, Kaspersky will maintain its presence in other regions, including Europe. The company has been under mounting pressure from various governments due to concerns about its potential connections to the Russian government. Although Kaspersky has consistently denied aiding Moscow in cyber espionage, there are ongoing fears that the company could be compelled to share customer data under Russian law.
The U.S. government's 2017 ban on Kaspersky from its networks was an early indication of the company's challenges. While Kaspersky contested that ban, the recent Commerce Department action has forced a more definitive response.
The closure of Kaspersky's U.S. office urges American customers to seek alternative cybersecurity solutions before the Commerce Department's deadlines.