IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

NetApp cuts workforce by 6% as it "narrows" business focus

The axe has fallen heaviest on the company's marketing department and SolidFire

NetApp Logo

Hybrid cloud data services firm NetApp has revealed it has cut its workforce by almost 6% as the firm looks to narrow its business focus for the future. 

Revealing the cuts before its quarterly earnings call, NetApp told The Register that it is "realigning resources and investments" in order to best 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 explained. 

"These changes are a continuation of the transformation we are undertaking as we focus on driving growth for more customers globally by enabling their digital transformations and cloud journeys."

The Register also revealed details of an all-hands email, sent on 25th August, which detailed a 5.5% reduction to NetApp’s workforce of 11,000. According to the news site, employees were quickly informed if their roles were being made redundant. 

In terms of where the cuts have taken place, the axe appears to have fallen heaviest on the company’s marketing department – which includes technical marketers – as well as among the engineers and developers inherited when NetApp acquired SolidFire back 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.

"SolidFire, yes, I can confirm was part of the team that was impacted," he said. "We are narrowing our focus with the SolidFire and HCI portfolio to the high-margin parts of the market as we have signalled on prior calls."

Responding to questions during NetApp’s quarterly earnings call, Kurian said the changes largely took place within areas of the business that didn’t align with its main priorities going forward. 

"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. 

Featured Resources

Activation playbook: Deliver data that powers impactful, game-changing campaigns

Bringing together data and technology to drive better business outcomes

Free Download

In unpredictable times, a data strategy is key

Data processes are crucial to guide decisions and drive business growth

Free Download

Achieving resiliency with Everything-as-a-Service (XAAS)

Transforming the enterprise IT landscape

Free Download

What is contextual analytics?

Creating more customer value in HR software applications

Free Download

Recommended

Google unveils new Assured Open Source Software service
open source

Google unveils new Assured Open Source Software service

18 May 2022
Malwarebytes hires new channel chief to lead MSP and partner network
Managed service provider (MSP)

Malwarebytes hires new channel chief to lead MSP and partner network

18 May 2022
Palo Alto and Deloitte to deliver managed security services in the US
Managed service provider (MSP)

Palo Alto and Deloitte to deliver managed security services in the US

17 May 2022
US and EU thrash out plans to avert chip production “subsidy race”
Hardware

US and EU thrash out plans to avert chip production “subsidy race”

17 May 2022

Most Popular

16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

13 May 2022
Preparing for the 3G sunset
Network & Internet

Preparing for the 3G sunset

18 May 2022
(ISC)2 launches free scheme to get 100,000 UK citizens into cyber security
Careers & training

(ISC)2 launches free scheme to get 100,000 UK citizens into cyber security

17 May 2022