Storage technology giant NetApp (Nasdaq: NTAP) shares dropped more than 7 percent in afterhours trading Wednesday following a quarterly earnings report that fell far short of Wall Street revenue expectations.

NetApp, which operates a major campus in the Triangle, also formally announced plans to lay off 6 percent, or some 500 people, of its work force. Where layoffs will be made was not disclosed. The company has some 600 employees in RTP.

After reporting revenues of $746 million vs. Wall Street expectations of more than $900 million, NetApp saw its shares drop $1.05 to $14.20. Shares had closed at $15.25 on Wednesday, up 32 cents, before the earnings report.

NetApp revenues dropped some 16 percent from a year ago as the economy slowed and companies reduced technology spending. Hurting revenues further was a $128 million write down it took in a dispute with the U.S. federal government.

"This macroeconomic situation is here to stay for a while and it’s a lot worse than people thought it would be," Chief Financial Officer Steve Gomo told Reuters. "We want to make sure we have a business model that yields a reasonable result at a lower level of revenue."