Nutanix to cut 5% of global workforce as company restructures for AI and long-term growth

Nutanix is set to reduce its global workforce by approximately 5% over the next three months as the cloud software company restructures its organisation, seeks to improve operational efficiency and reallocates resources towards strategic growth areas including artificial intelligence.

The San Jose, California-based multi-cloud and hyperconverged software provider announced the workforce reduction in a filing with the US Securities and Exchange Commission (SEC) on August 4. The company expects to complete the layoffs by the end of October 2026.

“The workforce reduction is intended to streamline and realign the Company’s organizational structure, improve operational efficiency and agility, and reallocate resources toward strategic priorities and long-term growth objectives,” Nutanix said in the filing.

The company did not disclose the exact number of employees affected. Nutanix said the scope, timing and implementation of the workforce reduction could vary by jurisdiction, depending on local legal requirements, consultation processes and engagement with employee representative bodies.

Nutanix expects to incur between $33 million and $43 million in severance and other termination costs as part of the restructuring.

Nutanix to redirect resources towards AI and growth

A Nutanix spokesperson said the workforce changes were part of the company’s broader long-term strategy to align resources with areas offering the strongest growth opportunities.

“To support that effort, we have made the difficult decision to realign the size and structure of certain teams across the company, including a global reduction of approximately 5 percent of our workforce, alongside broader organizational changes,” the company said.

The restructuring will allow Nutanix to increase investment in areas including AI, modern application platforms through its Nutanix Kubernetes Platform (NKP), infrastructure modernisation through external storage and customer-facing sales resources.

“Ultimately, we believe these actions will help us execute more effectively, improve agility, and better serve our customers and partners over the long term,” the company said.

Nutanix added that it remains committed to supporting employees affected by the workforce reduction throughout the transition.

Layoffs come despite revenue and recurring revenue growth

The workforce reduction comes despite Nutanix reporting growth in its latest quarterly results.

The company generated $703 million in revenue in the third quarter of fiscal 2026, representing a 10% increase year on year. Annual recurring revenue reached $2.43 billion, up 15% from the same period a year earlier.

Nutanix also added more than 700 new customers during the quarter.

However, Chief Executive Officer Rajiv Ramaswami said the company continued to operate in a challenging macroeconomic environment.

“Supply chain challenges continue to drive higher prices and generally longer lead times for server hardware from our partners, which are pressuring customer budgets and timelines,” Ramaswami said during the company’s third-quarter earnings report in May.

He added that Nutanix’s focus on customer choice helped mitigate some of the impact and allowed customers to better manage deployment timelines and budgets.

The latest restructuring reflects a broader trend across the technology industry, where companies are reshaping workforces and redirecting investment towards AI, automation and other emerging technologies even as some businesses continue to report revenue growth.