Nutanix to lay off five per cent of global workforce: Here’s why

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

Nutanix Tuesday announced plans to reduce its global workforce by five per cent over the next three months as the company seeks to change its internal structure and boost long-term growth.

“The workforce reduction is intended to streamline and realign the company’s organisational structure, improve operational efficiency and agility, and reallocate resources toward strategic priorities and long-term growth objectives,” Nutanix said in a filing Tuesday with the US Securities and Exchange Commission.

The California-based multi-cloud and hyperconverged software specialist said it expects to complete the layoffs by the end of October.

“The ultimate scope, timing and implementation of the workforce reduction may vary by jurisdiction and remain subject to applicable local law requirements, consultation processes, engagement with employee representative bodies (including works councils where applicable) and other implementation considerations,” Nutanix said in the filing.

Nutanix expects to incur severance and other termination costs of between $33m and $43m (£31.9m) as part of the restructuring.

In an email to CRN, a Nutanix spokesperson says that as Nutanix continues to execute its long-term strategy, it is aligning resources to better support the areas where it sees the greatest growth opportunity.

“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 five per cent of our workforce, alongside broader organisational changes,” Nutanix tells CRN.

“This will help us better invest in areas critical to our future including AI, modern application platforms with 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.”

Nutanix says it is committed to supporting affected employees with care and respect throughout the transition.

Nutanix partner ‘shocked’ but not worried

One top executive from a solution provider who is a long-time Nutanix partner says he was “shocked” to learn of the layoff news but isn’t worried about Nutanix’s future.

“It’s obviously horrible for all the workers affected by this. Nobody wants to see terminations like this,” says the Nutanix partner executive, who declined to be identified.

However, the exec says there aren’t any “red flags” he sees with Nutanix’s latest round of layoffs and reasoning, which is “somewhat of a common thing to do in this industry”.

“Companies need to restructure their workforce and shuffle employees around sometimes because of how fast this industry changes, because of how fast demand can spike or decrease, because something like agentic AI comes in and you need to put more investment in certain skills or certain departments,” he adds.

“I’m not really worried about this as a partner right now.”

Nutanix Q3 earnings results

Nutanix generated $703m (£521.5m) in revenue during its third fiscal quarter of 2026, representing a ten per cent year-on-year growth rate.

The company reported annual recurring revenue of $2.43bn for its third fiscal quarter of 2026, up 15 per cent year-on-year.

During the quarter, Nutanix added more than 700 new customers.

Despite the ten per cent growth Nutanix saw during the quarter, the macroeconomic environment remained dynamic, CEO Rajiv Ramaswami said during its Q3 earnings report in May.

“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.

“However, Nutanix’s focus on customer choice helps mitigate some of this impact and enables customers to better manage their deployment timelines and budgets.”

Nutanix’s stock remained roughly flat Tuesday morning, trading at around $61 per share.

This article originally appeared on CRN UK sister website CRN.