A US cloud computing company reports $703.1 million in revenue, then announces plans to lay off 5% of its workforce

A US-based cloud computing company is in the spotlight after announcing plans to lay off approximately 5% of its global workforce, just months after reporting higher revenue, rising recurring revenue, and adding more than 700 new customers during the third quarter of fiscal 2026.

Nutanix, a US-based enterprise cloud company, reported revenue of USD 703.1 million for the third quarter of fiscal 2026, up 10% year-on-year. Its annual recurring revenue (ARR), a key measure of predictable subscription income, increased 15% to USD 2.43 billion. The company also added more than 700 new customers during the quarter.

On August 5, Nutanix said in a filing with the US Securities and Exchange Commission (SEC) that the workforce reduction is intended to streamline and realign its organisational structure, improve operational efficiency and agility, and reallocate resources toward strategic priorities and long-term growth objectives. The company expects to substantially complete the layoffs by the end of October 2026.


"This will help us better invest in areas critical to our future, including AI, modern application platforms with NKP [Nutanix Kubernetes Platform], infrastructure modernisation through external storage, and customer-facing sales resources," a company spokesperson told ARN.

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

"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," Nutanix told CRN. "This will help us better invest in areas critical to our future including AI, modern application platforms with NKP, infrastructure modernization through external storage, and customer-facing sales resources."

Tech layoffs in 2026

Tech layoffs continue to impact the industry in 2026, with more than 170,000 workers losing their jobs so far this year. According to reports, layoffs are occurring at a faster pace than in 2025, when more than 245,000 employees were laid off. Many companies have attributed the cuts to AI-driven restructuring, efforts to improve efficiency, and increased investment in artificial intelligence initiatives.

Major technology companies, including Oracle, Microsoft, Amazon and Google, have all announced significant workforce reductions.