SUSE Plans to Cut Roughly 10% of Workforce as CEO Points to AI and Automation

German enterprise open-source vendor SUSE plans to eliminate roughly 10% of its workforce, telling employees that advances in automation and artificial intelligence are fundamentally altering how software companies structure their teams.

The workforce reduction was detailed in an internal memo sent to staff on Monday by Chief Executive Dirk-Peter van Leeuwen. The cuts were first reported by The Register based on the internal communication and later covered by The Next Web (https://thenextweb.com/news/suse-job-cuts-10-percent-ai-automation). SUSE employs more than 1,900 people, according to its controlling owner, Swedish private equity firm EQT, indicating that the restructuring will affect approximately 190 workers.

In the staff memo, van Leeuwen wrote that SUSE's existing operational setup and expense baseline cannot carry the organization forward. He argued that modern tooling allows engineering and operational teams to move faster with less administrative overhead and flatter management structures, concluding that the requirement for some existing roles has greatly diminished.

Specific departments facing reductions were not disclosed in the memo. According to the reporting, SUSE plans to notify affected workers by November 4. Employee representatives are scheduled to be nominated the following day, with individual consultation sessions beginning next week. The company intends to present its broader operating strategy for fiscal year 2027 to remaining staff on November 16.

The planned cuts follow an earlier effort in September, when The Register reported that SUSE had polled long-tenured employees about taking voluntary separation packages. SUSE had not published a public announcement in its corporate newsroom regarding the layoffs as of Monday.

The layoffs also come amid broader corporate maneuvering around SUSE's ownership. EQT acquired the Nuremberg-based company from Micro Focus in 2018 for $2.5 billion, floated it on the Frankfurt Stock Exchange in 2021, and took it private again in 2023. Reuters reported in March that EQT has evaluated a potential sale of the business. Van Leeuwen, a former Red Hat executive who took over as chief executive in 2023, told employees the job cuts reflect shifting operational demands rather than individual talent or dedication.