Data management company NetApp has announced it will lay off hundreds of staff, despite beating analyst expectations for Q1 2020.
The company filed an 8-K form with the US Securities and Exchange Commission (SEC), in which it refers to “headcount reduction” and reorganizing the company in order to better focus on storage software and systems, as well as public cloud.
“On August 25, 2020, NetApp committed to a restructuring plan to optimize its business and fund its biggest opportunities including returning to growth in storage software and systems and scaling the public cloud services business,” the document reads.
“In connection with the restructuring plan, the Company expects to reduce its worldwide headcount by approximately five percent."
“This reduction in workforce will be implemented throughout fiscal 2021. The Company expects to incur aggregate charges of approximately $35 to $40 million for employee terminations and other costs associated with the restructuring plan.”
Given that NetApp employs circa 10,500 people, five percent translates to roughly 500 employees made redundant.
According to The Register, the company CEO George Kurian confirmed the layoffs will mostly take place within scale-out, all-flash storage platform SolidFire.
"We are narrowing our focus with the SolidFire and HCI portfolio to the high-margin parts of the market," Kurian said.