Over the past few weeks, when Elon Musk has made headlines, it often hasn’t been for reasons involving Tesla (TSLA) or SpaceX. Rather, he’s been focused on the so-called Department of Government Efficiency (DOGE), which has prioritized stripping down federal agencies lately.
The White House allegedly created this new office to eliminate wasteful government spending. So far, this has meant the firing of many federal employees, some of whom held high-level positions.
These cuts have reached every corner of Capitol Hill as Musk’s office has requested that every federal staffer submit a list of their tasks. One department that recently saw its team severely downsized is the Cybersecurity and Infrastructure Security Agency (CISA).
In a time when cyber attacks are increasing, reducing the agency responsible for stopping them at the federal level may seem ill advised. However, one industry leader recently addressed this exact topic.
Palo Alto Networks CEO Nikesh Arora sees the recent CISA cuts in an expected way.
A cybersecurity CEO addresses DOGE’s CISA cuts
Despite some volatility, many cybersecurity stocks have performed well recently, with many of the sector’s top companies in the green for the year. That’s partially due to rising demand for their services and the fact that many companies in the space are utilizing artificial intelligence (AI) and offering investors exposure to the booming market.
One company at the forefront of this movement is Palo Alto Networks (PANW) , a multi-faced cybersecurity leader that has outperformed many of its competitors over the past year. CEO Nikesh Arora recently spoke to TheStreet about his take on the industry’s future.
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Arora is optimistic about his company’s direction, particularly its use of AI to prevent cyber attacks. However, many people seem worried about the future of cybersecurity in the U.S., as over 130 CISA employees have been fired so far.
According to its webpage, CISA leads the “national effort to understand, manage, and reduce risk to our cyber and physical infrastructure,” essentially keeping the nation safe from cyber attacks. Most people outside the field may not think too much about agencies like CISA, but when news of the DOGE cuts to the agency broke, some experts expressed strong concern.
Despite this, Arora doesn’t seem too concerned about what a smaller CISA means for the U.S. “The traditional government has been slow to adapt cybersecurity infrastructure,” he notes, highlighting that CISA has only existed since 2018.
He seems to favor DOGE’s new use of automation software, noting that he doesn’t believe the Trump administration can achieve its goals without automation. “I’m generally optimistic and hopeful as to how things will be on the other side if the government stays focused on its goals,” he states.
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Arora also notes that when it comes to cybersecurity risks, there seems to be no lack of urgency regarding the need to address them and no lack of awareness among constituents.
Other experts feel differently about stripping down CISA’s team
Arora notes that he sees less impact for the private sector from the CISA cuts. While he did not note this, the smaller CISA may lead to new opportunities for private-sector cybersecurity firms to procure lucrative defense contracts.
Not all cyber experts share his take on the impact of the CISA cuts, though. Audian Paxson, principal technical strategist at IRONSCALES, sees the U.S. as being at risk in ways many people may not realize.
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“The real risk isn’t just fewer alerts or slower patching,” he states. “It’s the breakdown of a defense model that actually works. CISA has built real trust and collaboration with the private sector. Undercut that, and sharing stops or gets unreliable. Visibility will get fragmented, and attackers can take advantage of the gaps or seams.”
Kris Lahiri, Chief Security Officer and co-founder at Egnyte, has a similar take on country’s new vulnerability.
“Realistically, cyber attackers are already watching DOGE’s actions closely, looking for opportunities to exploit any weaknesses that come from a reduction in staffing or funding. This could lead to an increase in successful cyber intrusions, resulting in data breaches, loss of sensitive information, and even threats to national security.”
Paxson offers context on how private sector companies can mitigate these risks, stating that “ Industry vendors and private organizations have to take a more active role in sharing and collaborating more.” That may provide a lane for companies like Palo Alto Networks and its peers to help prevent further cyber attacks.
As Arora acknowledges, like many other experts, future wars will likely be fought primarily with cyber weapons, leading to a growing need for defense platforms and strategies.
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