Russian cybersecurity company Kaspersky Lab has announced plans to “gradually wind down” its US operations and lay off its US-based employees following a Department of Commerce ban on selling its products in the United States. This decision marks the end of nearly two decades of the cyber security firm’s operations in the US. The shutdown process is set to begin on 20 July 2024, according to the company’s statement released on Monday.
“The company has carefully examined and evaluated the impact of the US legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable,” Kaspersky Lab said. It added that it would “continue investing in strategic markets and remain committed to serving its customers and partners and ensuring their protection.”
As part of the shutdown process, Kaspersky’s US website has been updated to prevent visitors from purchasing any of its products. This aligns with the recent US government restrictions on inbound sales of the firm’s software, which will bar software updates, resales, and licensing of the product effective 29 September. Additionally, new business transactions for Kaspersky in the US are to be halted 30 days after the initial announcement on 20 June.
The US government cited security risks posed by Russia’s influence on Kaspersky as the primary reason for the ban. Last month, US commerce secretary Gina Raimondo announced the prohibition on selling the company’s anti-virus software in the country. In addition, sanctions were imposed on Kaspersky’s senior leadership, including the chief business development officer, chief operating officer, legal officer, and corporate communications chief, due to concerns over cybersecurity threats.
(Source: Reuters)
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