USA (Washington Insider Magazine) – The Moscow-based corporation said it will gradually eliminate U.S.-based employment, which currently number less than 50, when it begins winding down American operations Friday. The U.S. Department of Commerce announced in June that Kaspersky will no longer be able to sell software or offer updates to existing clients beginning September 29, after it assessed that Russian hackers may use Kaspersky’s software against consumers.
Gradual Wind Down of US Operations
Kaspersky will begin phasing out its U.S. operations on Friday, affecting fewer than 50 employees. The company cited the new legal constraints as making continued business in the U.S. untenable. Despite this, Kaspersky plans to focus on other global markets.
Policy Reversal
According to Bankinfosecurity, this decision marks a sharp shift from Kaspersky’s previous position. Last month, the company vowed to pursue all legal options to maintain its U.S. operations and continue offering certain services. However, scrutiny over alleged Russian interference in U.S. elections intensified.
Impact of US Sanctions
In June, the U.S. Treasury Department imposed financial sanctions on 12 Kaspersky executives, including key figures in research and development. Kaspersky contested claims of connections to Russian intelligence but faced increased pressure.
Declining Market Presence
In North America, Kaspersky’s presence has decreased. The company is currently behind rivals like Norton and McAfee, with just 4% of the antivirus market. With a 2.9% market share, it ranked as the ninth-largest endpoint security vendor worldwide for enterprises as of June 2022.
Longstanding Tensions
Kaspersky’s exit has been a long time in the makingThe U.S. Department of Homeland Security issued a directive in September 2017 mandating civilian federal government agencies remove Kaspersky’s software after the company was accused of being linked to Russian intelligence services. This was followed by a broader ban on government networks.
Fallout from Ukraine Conflict
Following Russia’s invasion of Ukraine in 2022, the situation deteriorated. Kaspersky has been put to the list of telecom devices and service providers that the US Federal Communications Commission deems to be a risk to national security. With this change, Kaspersky became the first Russian company on the list, which had only Chinese corporations on it before.
