SUSE to Cut One in Ten Jobs Citing Automation and AI

Is AI now being named as the reason for layoffs in enterprise software? Open source company SUSE plans to cut about 10% of its global workforce, roughly 1,900 people, according to a memo from chief executive Dirk-Peter van Leeuwen that cites automation and artificial intelligence as drivers of the decision.

Affected employees are due to be told by November 4, and employee representatives are scheduled to be nominated on November 5. A voluntary separation offer made in September did not attract enough takers. SUSE is owned by the private equity firm EQT, which has backed the company since taking it private.

The wider FY2027 strategy is set to be shared with the organization on November 16. The announcement adds to a growing list of software and internet firms linking job cuts to AI tools, raising questions for workers and customers about how quickly the technology is changing the way companies build, support and sell products.