Nutanix, a leading Cloud virtualization provider, is set to terminate job of 270 employees, representing 4 percent of its global workforce.
Nutanix is slashing jobs following a review of its business structure and after taking other cost-cutting measures to reduce expenses.
Nutanix reported revenue of $403 million (+17 percent) with gross margin of 80.2 percent for its third quarter ended April 30, 2022.
Nutanix is expecting revenue of $1.535 – $1.555 billion with 82 percent margin for fiscal 2022. Nutanix will announce its full 2022 results on August 31.
“The headcount reduction is part of the company’s ongoing efforts to drive towards profitable growth. The company expects to complete substantially all of the headcount reduction by the end of the fiscal quarter ending October 31, 2022,” Nutanix said a filing with the US Securities and Exchange Commission (SEC).
Nutanix estimates that it will incur a pre-tax charge in the range of $20 million to $25 million during the fiscal quarter ending October 31, consisting of one-time severance and other termination benefit costs.
Last year, enterprise software major VMware filed a lawsuit against its former Chief Operating Officer Rajiv Ramaswami after rival Nutanix appointed him as President and CEO.
VMware alleged Ramaswami breached his legal and contractual duties and obligations to the company.
Nutanix had called VMware’s action nothing more than an unfounded attempt to hurt a competitor and we intend to vigorously defend this matter in court.
VMware alleged that Ramaswami failed to honor his fiduciary and contractual obligations to the company.
In May this year, chip and software maker Broadcom announced to acquire VMware in a cash-and-stock deal valued at $61 billion.
Nutanix was recognized as a “Major Player” in the IDC MarketScape: Worldwide Distributed Scale-Out File System 2022 Vendor Assessment.