Nutanix is slashing approximately 5% of its global workforce as part of a broader operational restructuring, a move that will include up to $43 million in pre-tax charges and is expected to be completed by the end of October.

The cuts were announced in a Securities and Exchange Commission (SEC) filing and explained as coming after “a review of its business structure.”

“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,” the filing noted.

Nutanix did not provide a specific number of jobs being cut or the location of those reductions.

A Nutanix spokesperson provided some additional insight in an email to SDxCentral, noting that "as Nutanix continues to execute its long-term strategy, we are aligning our resources to better support the areas where we see 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 5% of our workforce, alongside broader organizational changes," the email continued. "This will help us better invest in areas critical to our future including AI, modern application platforms with NKP [Nutanix Kubernetes Platform], infrastructure modernization 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. We are committed to supporting affected employees with care and respect throughout this transition."

Nutanix’s plan to cut 5% of its workforce is similar to Cisco’s move earlier this year to also slash around the percentage of its workforce. Cisco’s cuts impacted around 4,000 employees and was followed by a surge in its stock price.

Job cuts despite performance claims

Nutanix did report better than expected earnings for its most recent fiscal quarter that were bolstered by continued traction in gaining disenchanted VMware customers against some tightening due to ongoing supply chain challenges.

Nutanix’s results for the third quarter (Q3) of its fiscal 2026 showed revenues increasing 10% year over year to $703 million for the quarter. That growth was backed by more than 700 “new logo” wins, with CEO Rajiv Ramaswami telling investors “most of our customers are coming from and migrating away from” VMware and Broadcom.

That route bolsters Nutanix’s long-standing enchantment of VMware customers. Ramaswami had previously claimed that VMware’s overall customer sentiment remains dour following its acquisition by Broadcom and subsequent changes to VMware’s go-to-market approach.

“I think there's no doubt that the customer sentiment continues to be negative about Broadcom,” Ramaswami said during a press briefing at the vendor’s .NEXT event. “There's no doubt about it, and increasingly negative.”

That sentiment has allowed Nutanix to bolster its customer base. Ramaswami at that time said the vendor has “about 30,000 customers," numbers bolstered by the hundreds of disgruntled VMware customers Nutanix has been attracting each quarter, “and we expect that to continue,” Ramaswami added.

Ramaswami during the .NEXT event said that Broadcom has an “installed base of probably 300,000 customers or so,” and “we are targeting about 165,000 of those customers … and we have a segmented approach to going after those customers.”

Those numbers align with analyst estimates that more than 100,000 VMware customers could eventually leave that vendor.

“Nutanix continues to be a top alternative to VMware in the wake of the Broadcom acquisition,” equity research firm William Blair wrote in a note earlier this year tied to Nutanix’s Q2 earnings. “Adoption remains strongest in the mid-market where migration friction is lower, but Nutanix is increasingly gaining footholds within larger enterprises, often starting with partial deployments that can expand over time.”

Despite that potential, Ramaswami also noted the vendor remained watchful of ongoing memory related supply chain challenges, explained that “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.”

“They're looking for more flexibility on software licensing terms,” Ramaswami said of these moves. “There are some instances of customers delaying projects, but those are not very common, but that does happen once in a while.”

This uncertainty has some customers leveraging Nutanix’s more flexible hybrid-multicloud architecture where they can tap public cloud resources in the near term.

“We have a number of tools to help them offset these issues, and they're actually also making use of this. They have choice of several vendors. We have external storage platforms now available where they can do migration without requiring new hardware purchases. They can use our solutions in the public cloud, and we've seen some customers do that directly, where your servers are more easily available and sometimes cheaper than buying enterprise servers,” Ramaswami explained. “So our customers are certainly getting used to this, and we are also providing them the options to help them adapt to this supply chain environment.”

Ramaswami did add that Nutanix expects this supply chain challenge to extended into next year.

UPDATE: Story updated with a comment from Nutanix.