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Indian-origin George Kurian-run Cloud software company NetApp on Tuesday announced it is laying off 8 per cent of its workforce globally, citing "macroeconomic challenges and the reduced spending environment" in the market.
In a filing with the US Securities and Exchange Commission (SEC), the company said that it will restructure and reduce the workforce as part of its efforts to realign resources to prioritise investments against its biggest opportunities in light of the macroeconomic challenges and reduced spending environment that continue to impact the company. "In connection with these actions, the company expects to reduce its worldwide headcount by approximately 8 per cent. The reduction in workforce is expected to be substantially implemented through the end of the fourth quarter of fiscal 2023," it said. According to reports, the company employs about 12,000 people globally, so the job cuts are likely to impact around 960 employees. The company, which has a significant presence in the Indian market, expects to incur aggregate charges of approximately $85 to $95 million consisting primarily of employee severance and benefit costs associated with the restructuring. "Most of these charges will be cash expenditures and it will recognise the majority of these charges in the third quarter of fiscal 2023," said NetApp. In an internal memo to employees, Kurian said that companies are facing an increasingly challenging macroeconomic environment, which is driving more conservatism in IT spending. "We are not immune to these challenges. Against this backdrop, we must be agile, deliver on our near-term commitments, while positioning ourselves for long-term success," he wrote. The San Jose-based company has a market cap of over $14 billion, according to reports. NetApp is a global cloud-led, data-centric software company that empowers organisations to lead with data in the age of accelerated digital transformation. --IANS na/pgh ( 312 Words) 2023-01-31-22:42:02 (IANS)
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