NetApp Prepares To Slash Workforce By 8%, Take $90M Charge

NetApp Prepares To Slash Workforce By 8%, Take $90M Charge
  • NetApp, Inc NTAP expects to reduce worldwide headcount by approximately 8% to contain costs amid macro uncertainties
  • NetApp looked to implement the plan through the end of the fourth quarter of fiscal 2023.
  • NetApp likely employs about 12,000 people globally, therefore, the move will impact around 960 people, TechCrunch reports.
  • The Company expects to incur aggregate charges of $85 million - $95 million consisting primarily of employee severance and benefit costs associated with the restructuring. 
  • The Company expects that most of these charges will be cash expenditures and will recognize the majority of these charges in the third quarter of fiscal 2023. 
  • NetApp's second-quarter net revenue grew 6% year-over-year to $1.66 billion (up 12% in constant currency).
  • Q2 billings were $1.60 billion, up 3% Y/Y (up 9% in constant currency).
  • Hybrid Cloud segment revenue was $1.52 billion, up from $1.48 billion a year ago.
  • NetApp generated $214 million in operating cash flow and held $3.03 billion in cash and equivalents as of October 28.
  • Price Action: NTAP shares traded lower by 0.71% at $65.04 on the last check Tuesday.

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