NetApp Inc. was at the center of some buzz over the weekend among publications that cover corporate financials, after a column in Barron’s touched off speculation on Wall St. that NetApp might be about to report encouraging earnings. Amid that speculation was buzz that the company would also be laying off workers to maintain its profit margins as the economy continues to spiral downward.
NetApp PR director Jodi Bauman today confirmed the company plans to reduce its global workforce by 6% with the following statement: “”Today NetApp took a number of steps to better align our resources with the business outlook. This restructuring includes a reduction of about 6% of the global workforce, as well as the reallocation of other resources to initiatives designed to increase operating efficiency and build a foundation for additional market share gains.”
The company outlined a strategy at its Analyst Day last March that included adding to its sales force to better penetrate the enterprise market. It remains unclear how the planned cuts will affect that strategy. NetApp will hold its quarterly earnings call on Wednesday and may offer additional color then.