NetApp is cutting jobs at its big campus adjacent to Cisco in Research Triangle Park, but the storage tech company won’t say how many. Despite the cuts, a NetApp spokesperson says the company remains committed to its N.C. operation.
Two weeks ago, NetApp (Nasdaq: NTAP) disclosed it would cut 12 percent of its global work force as part of a huge reorganization.
The company had an estimated 1,600 employees in the Park. But how many people were laid off locally is not something spokesperson Meghan Fintland would confirm. Unconfirmed reports said 15 percent of the RTP crew would be cut in 2015 layoffs.
Fintland also said NetApp was not required to post a formal job cut notice (a WARN report) with the state Department of Commerce because “our impacted numbers did not meet the WARN threshold in the state.”
WRAL TechWire asked Fintland a number of questions about the layoffs and what the reorganization means for its RTP campus.
NetApp chose to issue a statement rather than responding to individual questions.
“NetApp is transforming as a company to become more focused, efficient, and effective. These changes will allow us to build a thriving company able to rapidly respond to the changing IT market,” she explained.
“Part of that transformation impacted our workforce on March 1, 2016, including employees at our RTP facility.
“This is a difficult but important step in aligning our cost structure and resources with the opportunities ahead.”
The RTP operation has figured highly in NetApp’s strategy and growth for years, the latest news coming in 2014 with the opening of a huge new lab and a commitment to add 150 new jobs. Former Chair and CEO Dan Warmenhoven, who lived in the Triangle at one time, and chair/CEO Tom Georgens, grew the RTP operation since 2007.The 2014 plan to add jobs came despite NetApp cutting jobs earlier in the year and in 2013.
However, the company has a new leader (CEO George Kurian), and he is steering NetApp in new directions as the storage industry morphs. NetApp is focusing on flash storage, for example, such as its recent acquisition of SourceFire.
So what do all the changes mean for RTP?
“RTP has and will continue to be a major facility for NetApp,” its spokesperson said.
“We believe the transformation process will allow us to continue to build a thriving company across the world and in RTP.
“NetApp’s RTP facility will continue to be focused on product development, research and development, marketing, field operations and customer success, including services and support.”
However, NetApp will NOT meet the promise of new jobs as part of the 2014 expansion which included tax incentives from the state. NetApp told the Triangle Business Journal new job targets won’t be met but the investment in infrastructure would meet the requirements spelled out in its incentive agreement.