NetApp Inc said on Tuesday it would cut roughly 960 jobs, or about 8% of its global workforce, as the cloud data management firm grapples with tough economic conditions that have crimped customer spending.
The company expects to implement the job cuts largely through the end of fiscal 2023 and incur related charges of about $85 million to $95 million in the third quarter. U.S. companies have been downsizing and slashing costs to better cope with the global economic downturn after global central banks unleashed rapid interest rate hikes to tackle inflation.
“Companies are facing an increasingly challenging macroeconomic environment, which is driving more conservatism in IT spending. We are not immune to these challenges,” NetApp Chief Executive George Kurian said in a letter to employees. The company had about 12,000 employees as of April 29, 2022.
