Nutanix confirms COVID-19 cost-cutting actions will hit UK and European staff

Nutanix has confirmed it has asked non-US staff to take two weeks' voluntary unpaid leave as part of wider actions to minimise the fallout from COVID-19.

The hyperconverged infrastructure vendor hit the headlines yesterday as it emerged it will ‘furlough' over 1,400 US staff, equating to around a quarter of its workforce.

Those affected, who are all based in the Bay Area, will undergo two, week-long unpaid furloughs over the next six months.

But the NASDAQ-listed vendor also confirmed it has asked staff outside the US to take a total of two weeks of voluntary unpaid leave during the same time period.

Nutanix's share price crashed in late February as CEO Dheeraj Pandey attributed underwhelming Q2 results to the "murky" environment caused by the pandemic, reasoning it doubled down on when explaining its current actions.

"Like many companies in today's COVID-19 economic environment, we're taking proactive steps to help minimize the long-term impact on our global team members and our customers," Nutanix stated.

Nutanix also took umbrage at the press coverage of its cost-cutting actions, claiming several outlets had "inaccurately" characterised the furloughs as layoffs.

"Furloughed US staff, as well as staff outside the US who voluntarily take unpaid leave, will maintain their benefits and employment status with Nutanix while on furlough / unpaid leave," it emphasised in its statement to CRN.

"We have carefully scripted these actions to minimise the impact on our customers, with all Nutanix services fully available during this time.

"Our philosophy as we navigate the COVID-19 pandemic is to do the ‘most good' with the least amount of harm for all of our employees, and these actions will help us achieve that."

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