Feeds

NetApp lays off staff

Six per cent to go

Beginner's guide to SSL certificates

NetApp is laying off up to six per cent of staff as it copes with a recession that's affecting enterprise storage purchases.

According to Jodie Bauman, director of corporate PR: "Today NetApp took a number of steps to better align our resources with the business outlook. This restructuring includes a reduction of about 6 per cent of the global workforce, as well as the reallocation of other resources to initiatives designed to increase operating efficiency and build a foundation for additional market share gains."

With a workforce of about 8,000 that means up to 480 jobs are at risk.

NetApp will announce its third quarter fiscal 2009 results on Wednesday. This quarter, which ended January 23, 2009, includes the last two months of 2008 during which revenues took a steep downturn for many IT suppliers. By making these cuts NetApp is sending a pretty clear signal that its Q3 fy09 results will be pretty badly depressed. There are no details available on where the headcount reductions will fall.

Last year NetApp deliberately boosted its sales headcount in order to increase its coverage of enterprise accounts where it thought it was under-represented. With enterprises turning their IT purchase tap down, the yield from NetApp's increased salesforce is not high enough to sustain the current headcount levels. There is also a message here that NetApp thinks the recession will last several quarters more. Otherwise it could afford a short-term hit to its revenues.

NetApp very recently announced the closure of its S Family, aka StoreVault, low-end storage product line. It also closed its SnapMirror for Open Systems product line in December.

Other storage companies such as EMC, Seagate and Western Digital have also announced lay-offs.

NetApp was recently voted the best company to work for in a Fortune survey.

In Q3 fy08 NetApp recorded revenues of $884m and net income of $101.8m. In the the second quarter of fiscal 2009 its revenues were $911.63m and net income $49.2m.

NetApp shares are currently priced at $16.22 and have enjoyed a rally since December 26th, when they were $12.59. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
IT crisis looming: 'What if AWS goes pop, runs out of cash?'
Public IaaS... something's gotta give - and it may be AWS
Linux? Bah! Red Hat has its eye on the CLOUD – and it wants to own it
CEO says it will be 'undisputed leader' in enterprise cloud tech
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
Troll hunter Rackspace turns Rotatable's bizarro patent to stone
News of the Weird: Screen-rotating technology declared unpatentable
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.