THE CRUNCH

SUSE is cutting roughly 10 percent of its global workforce, about 190 of its 1,900 employees, in a restructuring the company attributes to automation and AI. In an internal memo seen by The Register, CEO Dirk-Peter van Leeuwen confirmed the "difficult news", writing that "automation and AI are fundamentally shifting how software companies operate" and that the organisational design and cost base SUSE relies on today "will not carry us forward successfully".

Van Leeuwen said the privately owned company, whose owner is Swedish private equity firm EQT, decided on the cuts after reviewing its future strategy, required capabilities and team structures. Modern tooling is already changing daily workflows, he wrote, enabling faster work with less operational overhead and flatter reporting lines, and the need for some existing roles has "greatly diminished" while others will evolve over the next few years. The specific roles at risk were not outlined.

There is commercial context worth noting: EQT bought SUSE from Micro Focus for $2.5 billion in 2018, floated it on the Frankfurt Stock Exchange in 2021, then took it private again in 2023 after van Leeuwen took over as chief executive. In March, EQT was reportedly considering selling the company.

WHAT HAPPENS NEXT

Affected employees will be informed by November 4, employee representatives will be nominated on November 5, and one-to-one meetings begin at the start of the following week. The full fiscal year 2027 strategy goes to staff on November 16.