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SUSE to cut one in ten employees because of AI

theregister.com9 points7 comments
Screenshot of SUSE to cut one in ten employees because of AI

SUSE plans to eliminate about 10 percent of its roughly 1,900 jobs, citing automation and AI as forces changing how software companies work. CEO Dirk-Peter van Leeuwen told staff that the company’s current structure and costs would not support its future, as new tools allow teams to work faster with less operational overhead and fewer management layers. SUSE says it has reviewed which roles remain necessary, which employees could move into different work, and where to increase or reduce investment. It has not specified which jobs are at risk. Employees affected are due to be notified by November 4, with individual meetings beginning the following week; the company plans to present its fiscal 2027 strategy on November 16.

Van Leeuwen framed the cuts as a response to changing organizational needs, not a judgment on employees’ abilities, and said some roles will evolve while others have diminished in need. The announcement follows a September effort to ask long-serving employees to take voluntary separation, which apparently did not achieve enough departures. SUSE had previously expanded its focus on AI. Its owner, private-equity firm EQT, bought the company in 2018, took it public in 2021, and returned it to private ownership in 2023. EQT was reportedly considering another sale in March, adding uncertainty about SUSE’s broader corporate direction as it reshapes its workforce.

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