NetApp cutting about 640 jobs

NetApp is cutting jobs for the second time this year. The Sunnyvale company didn’t specify the number, but the 6 percent it announced amounts to about 640 jobs based on its global workforce of about 10,700 employees.

The cuts, announced by the data-storage company in a filing Thursday, follow a 12 percent reduction announced in February, which amounted to about 1,500 jobs. NetApp also cut jobs last year.

“Over the past year, our CEO George Kurian has shared how NetApp has been transforming our business to improve productivity and lower our cost structure to align with our revenue expectations and fund investment in growth areas,” the company said in an emailed statement Friday. “We remain confident that with sustained execution, we can expect a return to moderated growth in our FY18.” The company’s next fiscal year begins in May 2017.

NetApp is dealing with the rise of cloud-based storage. Late last year, it announced it was buying SolidFire, an all-flash storage provider. This week, it launched new hybrid cloud storage tools.

NetApp said this latest round of job cuts will be completed by the end of the 2017 fiscal year (April) and that it will take a $50 million to $60 million related charge.

The company’s shares are down about 3.8 percent to $31.21.

 

Photo courtesy of NetApp

 

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