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Home » SUSE to cut about 10% of staff as CEO cites AI and automation

SUSE to cut about 10% of staff as CEO cites AI and automation

Key facts
  • SUSE is cutting approximately 10% of its global workforce.
  • SUSE has about 1,900 employees, putting the cuts at around 190.
  • CEO Dirk-Peter van Leeuwen tied the cuts to automation and AI.
  • SUSE staff will see the fiscal year 2027 strategy on Nov. 16.
Source: The Register

NUREMBERG, GERMANY — Open source software company SUSE is cutting approximately 10% of its global workforce, with chief executive Dirk-Peter van Leeuwen telling staff that automation and artificial intelligence (AI) have reduced the need for some roles. With about 1,900 employees, the cuts would affect around 190 people.

Staff affected by the redundancies were to be told by Nov. 4, with one-to-one meetings beginning the following week. SUSE has not said which roles or countries are affected.

Memo ties the cuts to AI

Van Leeuwen announced the reduction in an internal email to staff on Nov. 2, which was seen by The Register. He said the company had reviewed its future strategy, required capabilities and team structures before deciding.

“What is clear is that automation and AI are fundamentally shifting how software companies operate,” van Leeuwen wrote. He added that the organizational design and cost base SUSE is built on today “will not carry us forward successfully.”

Some roles shrink, others change

“The requirement for some existing roles has greatly diminished. Other roles will evolve over the next few years,” van Leeuwen wrote.

He said modern tooling already lets teams move faster with less operational overhead and flatter reporting lines. SUSE is accelerating investment in high-priority areas and deprioritizing others.

The rest of the company will see the fiscal year 2027 strategy on Nov. 16. The cuts follow a voluntary separation offer to long-serving staff in September, which reportedly drew too few takers, according to HR Katha.

A private equity owner

Swedish private equity firm EQT bought SUSE from Micro Focus in 2018 for $2.5 billion, floated it in Frankfurt in 2021 and took it private again in 2023. In March, EQT was reportedly considering selling the company again, The Register said.

Van Leeuwen told staff the cuts are a “reflection of shifting organizational needs, not your talent or commitment.”

What it means for employers

SUSE’s memo is unusually direct in naming AI as a reason some roles are no longer needed. Employers planning similar restructuring face the same test SUSE says it applied: where people can evolve, what they can stop doing and what they need to do more of.

Employers handling a redundancy program can weigh offshore outsourcing for work that does not need to sit onshore, and compare options in OA’s ultimate guide to outsourcing.

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Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.

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