SUSE announces layoffs of 10%, affecting about 190 employees, with AI and automation listed as the main reasons

SUSE's layoffs affect employees globally, rather than being targeted at any single country or region. The company plans to begin notifying affected employees on November 4, but has not yet disclosed which departments, positions and office locations will be involved.

SUSE currently has about 1,900 employees; at a 10% reduction rate, this adjustment could affect about 190 people.

In an internal memo, van Leeuwen said AI capabilities are developing at an exponential rate, forcing software companies to rethink workflows and organizational structures. He noted that modern tools have already changed day-to-day working methods inside SUSE, enabling teams to accomplish more with less operational overhead and a flatter management structure.

He believes demand for some existing roles has already fallen sharply, while other roles will change over the next few years. Therefore, the company needs to accelerate investment in high-priority business areas while reducing resource input in others.

In the memo, van Leeuwen said these decisions are very painful for employees, corporate culture and the open source community, but the company believes this is a necessary measure to build a more sustainable and resilient SUSE.

It is worth noting that the layoffs did not come without warning. As early as September 2026, SUSE had already offered voluntary departure packages to some senior employees, hoping to reduce headcount through voluntary departures. However, the plan ultimately did not attract the number of participants management expected, so the company turned to formal layoffs.

According to an internal memo obtained by the UK tech media outlet The Register, SUSE will first send notices to affected employees, then nominate employee representatives on November 5, and begin one-on-one meetings the following week. The company also plans to present its overall development strategy for fiscal year 2027 to other employees on November 16.

At present, SUSE has not specified which positions will be the focus of the layoffs. Management said that before making decisions, the company assessed the future prospects of different roles, including which employees can adapt to new ways of working, which work can be stopped, and which areas need more investment.

SUSE is owned by Swedish private equity firm EQT. EQT acquired SUSE from Micro Focus for $2.5 billion in 2018, then took the company public on the Frankfurt Stock Exchange in 2021, but took it private again in 2023.

In March this year, market rumors emerged that EQT was considering selling SUSE again, with a potential valuation reportedly reaching $6 billion. Although it is not yet clear whether there is a direct link between the layoffs and a potential sale plan, the cost structure adjustment the company is undertaking is clearly also taking place against the backdrop of the owner reassessing the asset's value.

Another noteworthy detail is that SUSE has not actually abandoned its AI business. On October 27, 2026, the company had just announced new agentic AI features for its Linux management tools, hoping to use AI to further automate enterprise IT infrastructure management.

This forms a rather representative industry phenomenon: a company whose core business is Linux, open source software and enterprise infrastructure services is, on the one hand, developing and selling AI automation products, while on the other hand cutting its own workforce on the grounds that AI and automation are changing workflows.

SUSE's situation also reflects the structural changes taking place in the software industry. In the past, enterprise Linux distribution and infrastructure management businesses required a large number of engineers for software maintenance, system testing, technical support and customer service. As automation tools and AI coding assistants mature, some repetitive work may be compressed, and companies are beginning to reassess the necessity of existing roles.

However, SUSE has not published specific productivity improvement data, nor has it quantified how much work AI can actually replace. Therefore, attributing the layoffs entirely to AI technology itself remains mainly a strategic explanation given by management, rather than a result proven by public data.

For the open source community, the layoffs may also have another layer of impact. SUSE not only operates commercial Linux products, but has also long participated in the Linux ecosystem, open source projects and enterprise-grade infrastructure development. The departure of experienced engineers may affect the maintenance, technical support and community collaboration of some projects. There is still no clear answer as to whether the cut positions involve core developers.

From the perspective of the global software industry, SUSE's decision is somewhat emblematic: the employment shock brought by AI is no longer limited to traditional clerical work or internet platforms, but is beginning to directly affect software infrastructure companies that have long relied on professional engineers and technical staff.