New Delhi: Russian cybersecurity company Kaspersky will shut down its U.S. operations and lay off several employees after the U.S. government banned the sale of its software in June, citing security risks. Kaspersky announced it will start “gradually winding down” its U.S. operations on July 20, saying its business in the U.S. is “no longer viable.”
Journalist Kim Zetter first reported the news on Monday, mentioning that fewer than 50 U.S. employees will be laid off.
Kaspersky had initially planned to fight the ban, claiming that it “does not engage in activities that threaten U.S. national security” and would “use all legal options to keep its operations and relationships.”
In June, the U.S. Commerce Department announced a ban on selling Kaspersky’s antivirus software to U.S. consumers, citing security and privacy concerns due to the company’s Russian roots. U.S. Commerce Secretary Gina Raimondo said Russia has shown it can and will use companies like Kaspersky to gather and misuse Americans’ personal information.
After the ban takes effect, Kaspersky won’t be allowed to sell its software directly to U.S. consumers or through U.S.-based resellers. Some resellers have criticized the ban for hurting their businesses. Moreover, after September 29, Kaspersky will no longer be able to send software or security updates to U.S. customers, which will weaken the protection provided by its antivirus software.
The Commerce Department is giving U.S. consumers time to find alternatives to Kaspersky’s software by implementing the ban in stages. Additionally, the U.S. Treasury sanctioned several senior Kaspersky executives, preventing U.S. customers from paying for Kaspersky’s software or doing business with any future companies led by these executives. CEO Eugene Kaspersky was not among those sanctioned.
Both the Trump and Biden administrations have acted against Kaspersky. In 2017, the Trump administration banned the use of Kaspersky software across the federal government after Russian hackers stole classified documents from an intelligence contractor’s home computer running Kaspersky software.
Antivirus products typically have extensive access to the devices they protect, which raises significant security concerns. As of Tuesday, Kaspersky’s products were no longer available for purchase on its U.S. website, which now states, “For legal compliance purposes, Kaspersky products cannot be purchased from your country.”
