Kaspersky is Disbanding Its US Subsidiary Employees Amid Gradual Exit from the US Market Due to Legal Requirements

The US Department of Commerce's Bureau of Industry and Security (BIS) recently announced a prohibition on Kaspersky Lab and its subsidiaries or affiliates in the United States from directly or indirectly providing antivirus software and cybersecurity products and services to US citizens.

Under the new regulations, Kaspersky must cease providing antivirus software updates to its US customers by the end of September 2024. The BIS has granted businesses and consumers a three-month period to switch to alternative antivirus software products, as continuing to use Kaspersky without access to virus database updates would be pointless.

The US Department of Commerce stated that the ban was necessary as Kaspersky could potentially collect sensitive information from the US government, businesses, and consumers, thus strong measures had to be taken to prevent such activities.

In response, Kaspersky Lab issued a statement declaring it would explore all legal and viable options to maintain its operations and various partnerships in the US, emphasizing that Kaspersky does not engage in activities that threaten US national security.

However, Kaspersky now appears to have exhausted its options, as it is disbanding its US subsidiary's staff and shutting down all operations in the United States, a move that will significantly impact the company.

In an official statement, Kaspersky mentioned:

"The company has carefully studied and assessed the impact of US legal requirements, making this sad and difficult decision, as commercial opportunities in the United States are no longer viable."

This decision to lay off, disband, and close the US subsidiary will affect less than 50 employees, who are currently receiving severance packages, although specific amounts have not been disclosed.

The closure of Kaspersky's US subsidiary and affiliated companies also deals a significant blow to partners distributing Kaspersky-related software, but there seems to be no alternative solution to this issue.

Notably, Kaspersky's white-label antivirus software products will also be affected. These are essentially Kaspersky software but rebranded under different names and integrated into corporate software suites.

Enterprises using Kaspersky's white-label products will have to switch to other antivirus software, as Kaspersky's entire software lineup in the US will eventually receive no security updates.

Furthermore, the Office of Foreign Assets Control (OFAC) under the US Treasury Department has sanctioned 12 executives from Kaspersky Lab, prohibiting US companies or citizens from transacting with them, freezing their assets in the US, etc.

However, Kaspersky Lab's founder, Eugene Kaspersky, is not under sanctions, nor are Kaspersky Lab, its subsidiaries, and affiliated companies. The sanctioned executives, who have all worked in Russia's tech sector, do not include Eugene Kaspersky.