NetApp has announced it is laying off approximately eight percent of it’s workforce, joining the ranks of other major tech companies lay off thousands of employees.
The company cited a decrease in customer spending as reasons for the layoffs, which would equal about 960 employees.
CEO George Kurian said in a letter to staff that NetApp is “not immune” to the challenges facing the entire IT industry, and a new strategy was needed for the company to survive the downturn in revenue.
“We have a strategy built on a foundation of trusted customer relationships, industry-leading innovation, and unmatched partnerships with all the leading public cloud companies,” Kurian said.
“Even as we work through this difficult time, it is imperative we continue to deliver on our commitments to our customers, shareholders and our employees.”
The layoffs are a part of “positioning ourselves for long term success,” Kurian said.
NetApp did not say any specifics about their future strategy or any realignment of their focus – they reitirated their current commitments to projects in storage, data and cloud operations.
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The company’s second quarter fiscal year of 2023 saw a year to year rise of about 6%, but apparently NetApp is not taking this as means to keep their workforce at the same level.
Unlike other companies that also announced layoffs, NetApp did not share new priorities.
When Google, Microsoft, and Meta announced layoffs this year, they noted the extensive hiring during the pandemic but also shifted focus to new ventures in AI.
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