Russian cybersecurity giant Kaspersky Lab will “gradually wind down” its US operations and lay off its US-based employees. This decision follows the Department of Commerce's recent ban on the firm selling its products in the United States, which Kaspersky cited as the primary reason for its withdrawal.

“The company has carefully examined and evaluated the impact of the US legal requirements and made this sad and difficult decision as business opportunities in the country are no longer viable,” Kaspersky Lab said.

Independent journalist Kim Zetter was the first to report on the impending shutdown. Last month, the Commerce Department issued a ban prohibiting the sale and provision of Kaspersky software in the United States, citing national security concerns. Coinciding with the enforcement of the ban, Kaspersky's US operations will begin to wind down on July 20. Also, the company will be barred from rolling out new security updates to existing customers starting September 29.

The Department of Commerce's decision to ban Kaspersky was grounded in national security concerns, asserting that Kaspersky’s continued operations in the US posed a risk given the Russian government's offensive cyber capabilities and potential influence over the company. US officials have suggested that the Russian government could leverage Kaspersky's widely used anti-virus software to surveil Americans through hacking or data collection. Kaspersky has denied all allegations.

Kaspersky Lab boasts over 400 million users and 240,000 companies worldwide utilizing its software products, although the specific number of users and companies based in the United States remains unclear.

US government agencies were already prohibited from using Kaspersky Lab software. The legal basis for this action stems from a 2021 executive order by President Joe Biden aimed at protecting Americans' personal data from “foreign adversaries,” as well as a related order signed by then-President Donald Trump in 2019.

In April, the international volunteer intelligence community InformNapalm published an investigation revealing a close collaboration between the Russian antivirus maker Kaspersky Lab and the Russian UAV manufacturer Albatross in the development of military drones.