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Zscaler disclosed that it committed to a restructuring plan on September 1 that reduces approximately 3% of worldwide headcount. The company said it is reallocating resources to create capacity for AI and growth initiatives, making the cuts a strategic shift rather than a broad business shutdown.
Read analysis ↗Zscaler reported fourth-quarter revenue of $898.2 million and annual recurring revenue of $3.77 billion, both up 25% year over year. Non-GAAP operating margin reached a record 24%, although ARR growth excluding Red Canary was 20%.
Read analysis ↗Zscaler committed to a restructuring plan that will reduce worldwide headcount by approximately 3%. The company expects $30 million to $33 million in severance and benefit charges, with most costs recognized during the first half of fiscal 2027, while reallocating resources toward AI and growth initiatives.
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