Nutanix has announced plans to cut about five per cent of its global workforce over the next three months as part of a restructuring effort. The multi-cloud and hyperconverged software specialist company, based in San Jose, California, expects the layoffs to be completed by the end of October 2026. The move is aimed at streamlining its structure, improving efficiency, and shifting resources toward areas it sees as critical for future growth, such as artificial intelligence, modern application platforms, infrastructure modernisation, and customer-facing sales.
The company estimates severance and related costs will range between $33 million and $43 million. Nutanix emphasized that the scope and timing of the layoffs will vary across countries depending on local laws, consultation processes, and employee representative bodies. It also stated that affected employees will be supported respectfully during the transition.
Despite the workforce reduction, Nutanix continues to show growth. In its third fiscal quarter of 2026, it reported $703 million in revenue, a 10 per cent increase year over year, and annual recurring revenue of $2.43 billion, up 15 per cent. The company also added more than 700 new customers during the quarter.
However, supply chain challenges have driven up hardware costs and extended delivery timelines, putting pressure on customer budgets.
Industry partners expressed surprise at the layoffs but did not view them as a warning sign. They noted that restructuring is common in the fast-changing tech sector, where companies must adapt quickly to shifts in demand and new technologies. Nutanix’s stock remained steady at around $61 per share following the announcement.
Overall, the layoffs reflect Nutanix’s effort to balance short-term disruption with long-term investment in growth areas, while continuing to deliver steady financial performance. It is pertinent to mention here that Nutanix has a major corporate, research and operational presence in India.
