Analyst warns NetApp is prepping layoffs
1,300 pink slips prepared
According to a private Piper Jaffray note to its clients, NetApp is preparing to announce a 10 per cent work force reduction, about 1,300 people, in under-performing areas of its business such as Engenio, the acquired LSI disk array business.
The idea is, according to Piper Jaffray, for NetApp to maintain a solid operating leverage financial measure in its fourth quarter and full fiscal 2013 results to be announced on May 21.
We have not seen the Piper Jaffray note but its existence (and the 1,300 number) has been confirmed by two independent sources. We have also received information from another source last week that NetApp UK is laying off staff. The company refused to comment on this.
EMC has recently announced it is laying off 1,800 staff. An EMC contact said he'd received a sudden flurry of enquiries about job opportunities from NetApp staff.
Responding to a question about the Piper Jaffray note NetApp said; "NetApp is in its fiscal fourth quarter 2013 quiet period and cannot provide comment at this time." ®