NetApp swings the axe on 600 global staff

Storage vendor to incur up to $45m in 'realignment' costs

NetApp is preparing to get rid of 600 staff as part of a global realignment plan which will cost it between $35m ($21m) and $45m to implement.

In an 8K filing submitted to the US Securities and Exchange Commission (SEC) last night, NetApp detailed its "business realignment plan" which is behind the cuts, claiming it will sharpen its focus on its core strategy.

The jobs will be cut from its bases across the globe before the first quarter of its fiscal 2015, which starts in the summer. NetApp employs 12,680 staff worldwide, meaning this round of cuts will see its total workforce cut by five per cent.

The storage giant put the move down to constrained spending in the IT industry.

"NetApp committed to a business realignment plan designed to focus its resources on key strategic initiatives and streamline its business in light of the constrained IT spending environment," it said in the filing.

"The company expects to incur aggregate charges of approximately $35m to $45m for employee terminations and other costs associated with the business realignment plan. All of these charges are expected to be cash expenditures."

This is not the first time NetApp has looked to reduce its headcount as last May a profit fall meant 900 staff were shown the door.