Cloud storage and management technology developer NetApp said Tuesday it plans to lay off about 8% of its global workforce.
In a regulatory filing on Tuesday, NetApp disclosed the planned workforce reductions as part of its “planned efforts to realign resources to prioritize investments toward its largest opportunities in light of macroeconomic challenges and a reduced spending environment.”
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 NetApp’s only recent round of layoffs. The company laid off about 1% of its global workforce in the first six months of fiscal 2022 as it restructured to reduce its office space due to a large number of employees working remotely. Another 1% was released at the start of fiscal 2023 as NetApp restructured to redirect resources to the highest return activities.
California-based NetApp had about 12,000 employees worldwide, according to a July 2023 filing with the U.S. Securities and Exchange Commission.
NetApp expects severance-related charges and restructuring benefit costs to be between $85 million and $95 million.
In an email to employees that the company included in the SEC filing, NetApp CEO George Kurian wrote that the company is discussing the impact of macroeconomic issues that are driving businesses to be more conservative in their IT spending at NetApp.
“We are not immune to these challenges. In this context, we must be agile, meeting our short-term commitments while preparing for long-term success,” Kurian wrote.
“This means refining our strategy to focus on the areas of our business best positioned for growth, adjusting our cost structure to reflect our focus and market conditions, and raising the bar on our performance. I am confident that I he has successfully dealt with similar challenges together with you before.” that a sharp focus on our strategy and strong execution will enable us to capture the opportunity that lies ahead.”
Kurian continued: “The layoff announcement makes for a difficult day, so while it is necessary to strengthen the company’s competitive position, it does not overshadow the impact on employees and the company is ready to continue to offer customers the best storage, data and cloud operations solutions.
“We have a strategy built on a foundation of trusted customer relationships, cutting-edge innovation and unrivaled partnerships with all the leading public cloud companies. our customers, shareholders and our employees.”
The first month of 2023 is shaping up to be a tough time for employees in the IT industry, as technology layoffs will hit at least 17 companies, including IBM and SAP, both of which recently announced layoff plans.
A version of this story first appeared on Computing’s CRN sister site.
