Enterprise storage equipment vendor NetApp is set to slash 12 percent or 1,500 of its workforce to become more profitable.
NetApp, which recently announced the acquisition of SolidFire, says the job cut is aimed at transforming the company.
The US-based technology company will implement the reduction in workforce through the end of the first quarter of fiscal 2017. NetApp expects to incur charges of approximately $60 to $70 million for employee terminations and other costs associated with the restructuring.
NetApp reported fiscal Q3 revenue ended in January 2016 fell to $1.39 billion. NetApp said its net income for the third quarter of fiscal year 2016 was $153 million compared to $177 million in the same quarter prior year.
For the current quarter, the storage company forecast revenue of $1.35 billion to $1.5 billion.
NetApp CEO George Kurian said “the company was instituting a transformation program designed to stramline the business and reduce our cost structure, while at the same time, maintaining our ability to invest in strategic opportunities.”