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Kaspersky Closes London Office After US Ban: What’s Next?

by Raj Dixit
October 10, 2024
in Business, Events, Investing, Learning, Market, Markets, News, Story
Reading Time: 3 mins read
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Kaspersky, the company which is famous all over the world thanks to its products that help protect from cyber threats, is in bad shape. The company has increasingly declared that it is shutting its office in UK and parting ways with some people. This happened a few years after it that was seen in the US where Kaspersky did face some pretty serious challenges.

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Well, you may ask, Then why is Kaspersky vacating an entire building in London?

By the words of Kaspersky’s spokesperson Francesco Tius, this move is all about optimizing their business. That is why by closing the London office, they intend to organize the work in Great Britain based on partners. What does that mean? Well, instead of directly investing in the UK the company Kaspersky will have partners who will sell and support their products in this country. This is a little like going from independent proprietor of a shop to having a mate sell your goods for you – less expense but still maintaining your visibility.

But here’s the kicker – this is not just any regular office closure, even though this was conceived as one. The London office had less than 50 people working for it, yet the move is part of a broader trend. Kaspersky has been in the crosshair for years, more so from governments that fear the company has connections with Russia. Kaspersky has dismissed these allegations, however, the informational security of Great Britain does not trust this company since 2017. One has to wonder if that has left a lasting impression to result in today’s decision to shut down the London operations.

The US Ban That Began to Set Dominoes in Motion

However, Kaspersky did not fare well not only in the UK. This was evidenced by the breakup of Kaspersky lab products from the United States earlier this year when the US government banned their use. This is reminiscent of being told you are not welcome at the biggest party in town or what happened to Kaspersky in America. The firm had cut its earnings and had to close some offices resulting to many people being laid off.

To twist the onion, US Kaspersky users flipped when they determined that the Kaspersky software on their computers was uninstalled and replaced by Extreme Protect, or software from a completely new firm. This might be true, as Kaspersky asserted that they provided customers with satisfactory notice, but it appears they never took the time to ask for approval.

Google’s Goodbye to Kaspersky: Another Hit

But that was not enough for Kaspersky, it was also misfortune when its apps were booted of the Google Play Store by Google. Google did this after Trump administration put sanction on Kaspersky products by banning its products in America. While such restrictions were proposed for the United States only, Google proceeded to ban Kaspersky apps worldwide. 

Kaspersky was as fast to reassure that users outside US should not notice this decision at all. Those apps already installed on Android-based devices would continue to run and get updates, but Google Play will cease to provide downloading of these apps to new clients. 

The miscommunications have escalated to the point that Kaspersky said that they are negotiating with the US Department of Commerce on the issue. They should probably be able to sort this out soon and return these apps to the Play Store.

What’s Next for Kaspersky?

The company, however, has stated that it will never stop its sales drive. They are still selling advanced cyber security solutions through their European team and partners and they are far from throwing towel.

In a way, Kaspersky is more like a boxer that has been beaten down some times and yet comes back again. It seems they have incurred some damage in one way or another but are still on their feet – for the moment. What the future holds for them remains to be seen, but one thing’s for sure: The team is not going to be defeated easily you know?

Consequently, although it may be the end of Kaspersky in London it is not the end of the company’s story. Well, this cybersecurity giant is not out of the game yet and so everyone should watch out.

Tags: cybersecurity layoffscybersecurity newsKasperskyKaspersky layoffsKaspersky UK closureLondon office closureUK cybersecurityUS government banUS sales ban
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Raj Dixit

Who Am I? I am a Bridge. The London Bridge? Brooklyn Bridge? Or the Golden Gate Bridge? Let it be just anything. The only thing I want is.... that your ride is Joyful as I 'Bridge' the gap between you and what's happening around you.

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