SUSE to Cut About 10% of Jobs, CEO Points to AI
SUSE, the German Linux company, is cutting about 10% of its staff. The news comes from an internal memo that CEO Dirk-Peter van Leeuwen sent to workers on Monday, first reported by The Register.
SUSE makes Linux software. Linux is a free operating system that many companies use to run their computers and servers. The company was founded in 1992 and has more than 1,900 employees, based on figures from its owner, a Swedish private equity firm called EQT. A 10% cut would mean about 190 people losing their jobs.
In his memo, van Leeuwen said AI and automation are changing how software companies run. He wrote that new tools let teams work faster with fewer people and simpler management layers. Because of this, he said, some jobs are just not needed as much anymore.
SUSE has not said anything about the cuts on its own website. The company plans to tell affected workers by November 4. Worker representatives will be picked the day after that, and one-on-one meetings start next week. The rest of the company will learn the full plan for fiscal year 2027 on November 16.
Van Leeuwen called the move painful for SUSE's workers, its culture, and the open source community around it. Open source means software that anyone can see, use, and help build, often for free. He told staff the cuts are about changing business needs, not about anyone's skill or effort.
This is not the first sign of trouble at SUSE. Back in September, The Register reported that the company had already asked some long-time workers if they would leave voluntarily.
A company that may be for sale
SUSE has been through a lot of changes in ownership. EQT bought the company, based in Nuremberg, Germany, from Micro Focus in 2018 for $2.5 billion. EQT then took SUSE public on the Frankfurt stock exchange in 2021, before taking it private again in 2023. That same year, van Leeuwen, who used to work at Red Hat, became CEO.
In March, Reuters reported that EQT was thinking about selling SUSE. So these job cuts are happening while the company's future ownership is still unclear.
Oddly, just before the cuts were announced, SUSE unveiled new AI tools on October 27. These new features add "agentic AI" to its Linux management software. Agentic AI means AI that can act on its own to complete tasks, not just answer questions.
A former SUSE employee, Christian Brauner, reacted on the social media site Mastodon. He wrote that it is sad to see this kind of disruption happen to a good company just to boost profits.
SUSE is not alone. Several other employers have blamed AI for recent job cuts. The Netherlands government plans to cut 25,000 jobs. Barclays bank is cutting 5,000 jobs. American Express is cutting 5% of its staff.
What this means for you
If you work in tech, or you use SUSE's software at your job, this news might affect you directly. Here is what to keep in mind.
- If you work at SUSE, watch for direct communication from the company. They say affected employees will be told by November 4.
- If your company uses SUSE's Linux products, keep an eye on news about the company's ownership. A possible sale could affect pricing or support down the road.
- If you are watching the bigger picture, know that SUSE is just one of several companies citing AI as a reason for cuts right now. This trend may keep growing.
This site exists to explain stories like this one in plain language, for people who are busy but want to understand what is really going on in tech. You should never need a dictionary to follow the news, so we break down terms like "open source" and "agentic AI" as we go.
As a next step, if you or someone you know works in tech, it might be worth checking in on how your own company is talking about AI and jobs. It is easier to ask questions now than to be caught off guard later.
Many companies are now turning to post content automation tools to streamline publishing workflows while their teams adjust to AI-driven changes.
Source: The Next Web
