In an SEC filing, storage gear firm NetApp (Nasdaq: NTAP) says it is cutting its work force by some 5 percent due to a “constrained IT spending environment.”
The company also said it would implement a “business realignment plan.”
Details were not disclosed.
The company did not specify where the layoffs would occur.
Bloomberg news, reporting that the charges would be taken largely in the quarter ending April 30, pointed out that NetApp revenue rose only 1.6 percent in its fiscal 2013 year after an average 22 percent gain over the previous three years. Analysts are expecting sales to be unchanged this fiscal year, Bloomberg added.
NetApp cut 900 workers last year.
One of its largest campuses is in RTP.
In the SEC filing made Wednesday, the company said the cuts and realignment would cost between $35 million and $45 million.
The filing reads:
“On March 12, 2014, NetApp, Inc. (the “Company”) committed to a business realignment plan designed to focus its resources on key strategic initiatives and streamline its business in light of the constrained IT spending environment. The Company expects that the business realignment plan will be implemented through the end of the first quarter of fiscal 2015 and will include changes to the Company’s worldwide headcount. As part of the business realignment plan, the Company expects to reduce worldwide headcount by approximately 600 employees.
“The Company expects to incur aggregate charges of approximately $35 to $45 million for employee terminations and other costs associated with the business realignment plan. All of these charges are expected to be cash expenditures. The Company expects to recognize the majority of these charges in the fourth quarter of fiscal 2014.”
