Feeds

NetApp boffins first to go in 'workforce decimation' plan

300 R&D bods out the door in proposed cull of 1,300, say insiders

Application security programs and practises

Storage array biz NetApp has laid off 300 people at a research and development centre in India and “hundreds” more in the US, according to industry sources.

The Times of India reports that anonymous insiders at NetApp's Bangalore operation - which is the company's largest R&D facility outside of the US - have been given their marching orders. NetApp India declined to comment on the layoffs.

Two American sources also confirmed to The Register that hundreds of people were laid off in the US on Friday, supporting our article on Wednesday which reported that NetApp was preparing to lay off up to 1,300 people.

A NetApp spokesperson told El Reg at the time: "NetApp is in its fiscal fourth quarter 2013 quiet period and cannot provide comment at this time."

Investment bank Piper Jaffray privately warned its clients last week that NetApp is preparing to slash 10 per cent of its global workforce.

Looking across the industry, Dell's storage business reported in its latest quarter that its revenue was down ten per cent to $424m from $473m a year ago, suggesting the market is weakening. Storage giant EMC is laying off 1,800 staff in response to a downturn in profitability with, El Reg understands, mid-range VNX sales hit hardest.

Meanwhile, storage networking vendor and fellow NetApp rival Brocade's latest results show a downturn in Fibre Channel SAN networking gear.

From where El Reg's storage desk is sitting, we see the mid-range networked storage market facing a general downturn with suppliers scrapping it out. A strengthened HP StoreServ (3PAR) product line and IBM Storwize arrays could well tempt new customers across, leaving EMC, Dell and most likely NetApp facing uphill sales battles.

NetApp reports its fourth quarter and full 2013 fiscal year results on 21 May. It is facing an attack by Elliott Management, an activist investor seeking board-level changes so that NetApp can deliver more value to shareholders via stock repurchase, dividends or even, it's speculated, by a sale of the company. But this canard has been floated often before and - previously - has come to nothing. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
BlackBerry: Toss the server, mate... BES is in the CLOUD now
BlackBerry Enterprise Services takes aim at SMEs - but there's a catch
The triumph of VVOL: Everyone's jumping into bed with VMware
'Bandwagon'? Yes, we're on it and so what, say big dogs
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.