Zscaler will cut 3 percent of its workforce while revenue and ARR rise 25 percent
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Zscaler will cut about 3 percent of its worldwide workforce under a restructuring plan adopted Monday.
The cybersecurity company expects $30m to $33m in charges, mainly for severance and benefits. It expects to recognize most of that cost in the first half of fiscal 2027.
The reduction arrives beside growth. Fourth-quarter revenue rose 25 percent to $898.2m, and annual recurring revenue rose 25 percent to $3.771bn. Excluding the Red Canary acquisition, recurring revenue grew 20 percent to $3.630bn.
Zscaler said the plan reallocates resources toward its artificial intelligence and growth work. The filing does not state how many jobs are affected.
The document: Zscaler, Form 8-K, September 3, 2026, 0001713683-26-000156.