NetApp to Cut 600 Jobs in Restructuring

   By Tess Stynes 
 

NetApp Inc. (NTAP) said it is streamlining its businesses, including plans to reduce its global workforce by about 600 employees, in response to constrained spending on information technology.

The data-storage company expects to post charges of $35 million to $45 million related to the move, mostly during its fiscal fourth quarter ending in April, according to a filing with the U.S. Securities and Exchange Commission.

NetApp, on its website, said it has more than 13,000 employees worldwide. A NetApp spokesman said the latest planned headcount reduction is in addition to 900 job cuts announced last May as part of an earlier plan to cut unwanted costs.

"IT organizations are in transition as they look to take advantage of new technologies and delivery models to stay competitive and keep pace with data growth," NetApp said in a statement.

NetApp builds systems that store and manage clients' digital information, a market that has wavered over the past year as corporations' once-surging demand for storage hardware cools. Companies are increasingly looking to use the public cloud for data and workload management.

Write to Tess Stynes at [e-mail]

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