Kaspersky Lab, a prominent Russian cybersecurity company, has announced its U.S. division’s closure and its American employees’ layoff. This abrupt decision follows the U.S. Commerce Department’s recent ban on the sale of Kaspersky software, effective July 20, 2024.
The ban also restricted Kaspersky from updating its software in the U.S. after September 29, rendering it less effective over time as it will not receive new threat signatures. This also impacts vendors and customers using Kaspersky-embedded systems, who must replace the software to maintain security.
The company has been operating in the United States since 2005 and planned to contest the ban in court but ultimately deemed continued business operations in the U.S. unfeasible under the new legal constraints. The company did not specify the exact number of affected employees, only noting that it involves fewer than 50 individuals, reports Zero Day. Employees have reportedly received severance packages, though details were not specified.
The United States Department of Commerce banned Kaspersky software, citing national security issues as the primary reason. This decision came after a comprehensive investigation, though the specific details of the findings were not made public.
Government officials expressed concern that Russian authorities might leverage Kaspersky’s products for espionage or disruptive activities targeting American users.

This action is consistent with the U.S. government’s long-standing wariness towards Kaspersky. In 2017, the Department of Homeland Security prohibited federal agencies from utilising Kaspersky software. The following year, this prohibition was expanded to include U.S. military systems through an amendment to the Defense Authorisation Act. However, unlike the recent Commerce Department ruling, these earlier restrictions did not impact the commercial use of Kaspersky products.
Two key incidents influenced the DHS’s 2017 ban. In one case, Kaspersky software on an NSA contractor’s personal computer detected and extracted sensitive source code, mistaking it for malicious software. Another incident involved Israeli intelligence uncovering Russian government hackers allegedly using Kaspersky software to search for U.S. customer-system secrets.
Kaspersky has consistently denied these allegations, stating that its software acted within its designed parameters and that any sensitive code was deleted upon realising its nature.
While U.S. users and businesses will not face legal repercussions for continuing to use Kaspersky products, officials strongly advise discontinuing use to safeguard data and personal information.
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