Kaspersky Lab, the Russian-based cybersecurity firm and antivirus software provider, on Monday announced that it will “gradually wind down” its U.S. operations and eliminate U.S.-based positions starting from July 20, 2024.
According to the company’s statement released on Monday, the company will also be laying off its U.S.-based workforce of less than 50 employees.
However, the completion of the company’s exit formalities could take more than a year, as it’s a long process.
“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 said in a statement to Zero Day.
Kaspersky has been operating in the U.S. for close to 20 years, contributing to the nation’s strategic cybersecurity goals by protecting organizations and individuals in the country from ever-evolving cyber threats.
However, as an international vendor in the cybersecurity sphere, the company would “continue investing in strategic markets and remain committed to serving its customers and partners and ensuring their protection,” it added.
The decision to make this move follows the U.S. Commerce Department’s ban on Moscow-based Kaspersky Lab’s U.S. subsidiary on June 21 after an “extremely thorough investigation.”
It prohibits the company from directly or indirectly selling its security software in the United States or to U.S. persons, citing Kaspersky’s potential links to the Russian government that could endanger national security and invade users’ privacy by hacking or data collection.
The agency also added three entities—AO Kaspersky Lab, OOO Kaspersky Group (Russia), and Kaspersky Labs Limited (United Kingdom)—to the Entity List, which prevents any U.S. business from doing business with them.
Further, effective September 29, 2024, downloads of software updates, resales, and licensing of the product would be barred owing to the new restrictions by the U.S. government on inbound sales of Kaspersky software.
In addition, new U.S. business for Kaspersky would be blocked 30 days after the restrictions were first announced on June 20.
“The Biden-Harris administration is committed to a whole-of-government approach to protect our national security and out-innovate our adversaries,” Gina Raimondo, Secretary of Commerce, said in a statement at the time.
“Russia has shown time and again they have the capability and intent to exploit Russian companies, like Kaspersky Lab, to collect and weaponise sensitive US information, and we will continue to use every tool at our disposal to safeguard US national security and the American people. Today’s action, our first use of the Commerce Department’s ICTS authorities, demonstrates Commerce’s role in support of our national defence and shows our adversaries we will not hesitate to act when … their technology poses a risk to the United States and its citizens,” she added.
However, Kaspersky denied the claims that it helped Russia carry out cyber espionage. It also called the Department of Commerce’s decision “unfair”, as it ignored the significant transparency measures implemented by the company to showcase its enduring commitment to integrity and trustworthiness.
