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NetApp axes 600 jobs to stay competitive

Data centre
NetApp responds to shift from data centres to cloud

NetApp is to axe 600 of its employees as part of a move restructure and streamline its business, according to a report by MarketWatch.

The storage and data management firm has over 12,000 staff in more than 150 offices throughout the world. This means the cuts are five per cent of its workforce.

The decision is also in addition to 900 job cuts announced in May 2013, which was part of a move to cut costs at the company.

Financial cost

In a filing with the US Securities and Exchange Commission, Netapp said it expects to pay out between $35 million (£21 million, AU$39 million) and $45 million (£27 million, AU$50 million). These charges should mostly be complete during the company's fiscal fourth quarter, which ends in April.

The shift in recent years from traditional data centres to cloud storage has caused some strain on NetApp's revenue, forcing it to make adjustments.

"IT organizations are in transition as they look to take advantage of new technologies and delivery models to stay competitive and keep pace with data growth," the company said in a statement.

NetApp shares were up $0.41 (£0.25, AU$0.45), or 1.1 per cent, to $37.85 (£22.65, AU$41.80) at the time of writing.