NetApp, a developer of cloud storage and management technologies, said Tuesday it plans to lay off about 8% of its global workforce.
NetApp, in a regulatory filing on Tuesday, disclosed the planned workforce reduction as part of its “planned efforts to realign resources to prioritize investments against its greatest opportunities in light of macroeconomic and environmental challenges.” reduced expenditure”.
The planned layoffs are expected to be completed by the end of NetApp’s 2023 fiscal year, which is expected to be April 28.
This isn’t the only recent round of layoffs from NetApp. In the first six months of fiscal 2022, the company laid off approximately 1% of its global workforce as it restructured to reduce office space due to the large number of employees working remotely. distance. Another 1% were laid off at the start of FY2023 as NetApp restructured to redirect resources to the most profitable businesses.
California-based NetApp had about 12,000 employees worldwide, according to a July 2023 U.S. Securities and Exchange Commission filing.
NetApp expects severance and benefits charges from the restructuring to be between $85 million and $95 million.
NetApp CEO George Kurian, in an email to employees the company included in the SEC filing, wrote that the company had discussed the impact of macroeconomic issues, which are causing companies to be more cautious. in their IT spending, have on NetApp.
“We are not immune to these challenges. In this environment, we must be nimble, delivering on our short-term commitments, while positioning ourselves for long-term success,” Kurian wrote.
“This means refining our strategy to focus on areas of our business best positioned for growth, adapting our cost structure to reflect market direction and conditions, and raising the bar for our performance. similar challenges with you, I am confident this focus on our strategy and strong execution will enable us to seize the opportunity ahead.”
Kurian continued, “The announcement of the layoffs is a difficult day, and while necessary to strengthen the company’s competitive position, it does not overshadow the impact on employees, and the company is ready. to continue to provide customers with the best cloud storage, data and operations solutions.
“We have a strategy built on trusted customer relationships, cutting-edge innovation and unmatched partnerships with all major public cloud companies. Even though we are going through these difficult times, it is imperative that we continue to deliver on our commitments to our customers, shareholders and employees.”
The first month of 2023 is proving to be a tough time for employees in the IT industry, with tech layoffs affecting at least 17 companies, including IBM and SAP, both of which recently disclosed layoff plans.
A version of this story first appeared on Computing’s sister site, CRN.