NetApp said it was “realigning resources and investments” capture opportunities and “position the company for long-term success”.
“We continue to sharpen our focus on markets where we have both a significant presence and clear competitive advantage, specifically with our storage software and systems and cloud data services”, NetApp rationalised.
An email to staff detailed a 5.5 percent reduction to NetApp’s workforce of 11,000. According to the news site, employees were quickly informed whether they would lose their jobs.
Most of the cuts have fallen on the outfit’s marketing and the engineers and developers inherited when NetApp acquired SolidFire in 2015.
NetApp CEO George Kurian later confirmed that the layoffs would impact the all-flash storage vendor, as well as the HCI hyper-converged infrastructure solution which is built on SolidFire.
Kurian said the changes largely took place within areas of the business that didn’t align with its main priorities in the future.
“Those changes were driven by the strategic alignment and focus that we have to prioritise our resources in the core storage systems and software business, as well as accelerating our public cloud services business”, he explained.
NetApp’s quarterly earnings report revealed unexpected earnings and sales growth, posting net income of $77 million on sales of $1.3 billion – up from $1.24 billion for the previous year. So it’s not short of a bob or three.