SUSE cuts 10% of jobs as AI reshapes software industry
What's the story
SUSE, a leading open-source software company, has announced plans to lay off around 10% of its global workforce. The decision was revealed in an internal memo from CEO Dirk-Peter van Leeuwen. He said the move is part of a strategic shift toward automation and artificial intelligence (AI). The company employs nearly 1,900 people worldwide.
Industry shift
AI's impact on the software industry
Leeuwen acknowledged the big impact of automation and AI on the software industry.
He said, "What is clear is that automation and AI are fundamentally shifting how software companies operate."
The CEO stressed that these changes are not just affecting SUSE but also the broader economy.
He admitted that some existing roles have diminished due to these advancements in technology.
Strategic decision
Job cuts 'painful decisions': CEO
Leeuwen described the job cuts as "painful decisions" but necessary for SUSE's long-term sustainability and resilience.
He said, "These decisions are painful for our people, our culture, and our open source community."
The CEO emphasized that the company is adapting to these changes by investing in high-priority areas while deprioritizing others.
This strategy includes redefining team structures and capabilities required for future growth.
Notification process
Layoffs based on organizational needs, not individual talent
SUSE plans to inform the employees affected by the layoffs by November 4.
Employee representatives will be nominated the next day, with one-on-one meetings starting early next week.
The remaining staff members will get an insight into SUSE's fiscal year 2027 strategy on November 16.
Leeuwen clarified in his memo that these decisions are based on changing organizational needs, not individual talent or commitment.
Company background
Brief history of SUSE
Founded in 1992, SUSE (Software-und System-Entwicklung) is a German software company that provides Linux-based operating systems and cloud solutions.
The company was acquired by Swedish private equity firm EQT in 2018 for $2.5 billion. In 2021, EQT listed SUSE on the Frankfurt Stock Exchange but with disappointing results.
A couple of years later, Leeuwen took over as new CEO and later in 2023, EQT chose to take the company private again.