Russian cybersecurity company Kaspersky Lab will “gradually wind down” its US operations and lay off its US-based employees after the Department of Commerce announced a ban on the firm selling its products in the United States, Kaspersky said Monday.
The shutdown of Kaspersky Lab’s US operations will start on July 20, ending nearly two decades of the company operating in the country, according to the company’s statement.
“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.
Independent journalist Kim Zetter first reported the news of the company’s shutdown. The Commerce Department last month announced the ban of the sale and provision of Kaspersky software in the United States, citing national security concerns.
US officials have claimed that the Russian government could use Kaspersky’s popular anti-virus software to surveil Americans through hacking or data collection. Kaspersky has strenuously denied those claims.
More than 400 million people and 240,000 companies worldwide use Kaspersky Lab’s software products, according to the company. Just how many of those people and companies are in the United States is not clear.
US government agencies were already banned from using Kaspersky Lab software but the Commerce Department’s move to prevent the sale of the software in the United States was unprecedented. The legal authorities cited by the Commerce Department are relatively new and derived in part from a 2021 executive order that President Joe Biden signed in the name of protecting Americans’ personal data from “foreign adversaries” and a related order signed by then-President Donald Trump in 2019.
CNN reported in April that the Commerce Department was taking action against Kaspersky Lab.
Founded in Moscow in 1997, Kaspersky Lab grew into one of the world’s most successful anti-virus software companies alongside American rivals like McAfee and Symantec. Kaspersky Lab’s researchers, recognized as top-tier in the cybersecurity industry, are known for analyzing hacking operations suspected of being carried out by a variety of governments including Russia, the United States and Israel, but also cybercriminal threats that affect everyday users.
Kaspersky Lab said in its statement Monday that it would “continue investing in strategic markets and remain committed to serving its customers and partners and ensuring their protection.”
