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.