NetApp has announced plans to slash about 900 of its 13,000-plus staff globally as part of its business realignment process and return cash through stock buybacks and dividends.
The firm revealed the plan to cut jobs following its fourth-quarter earnings announcement, at which it posted a $174m profit on sales of $1.72bn, compared to a profit of about $181m on sales of $1.7bn during the corresponding quarter in 2012.
NetApp president and CEO, Tom Georgens, said the fourth quarter was highlighted by a continued strong uptake of clustered Data ONTAP.
"We are also pleased to announce enhancements to our capital allocation programme, reflecting our confidence in our underlying business as well as our commitment to enhancing shareholder value," Georgens said.
NetApp is also working on increasing its current stock repurchase programme by further $1.6bn, bringing the overall value to $3bn, which NetApp plans to complete over the following three years.
Elliott Management, which acquired a major stake in NetApp, is pressing the firm to change its board and study ways to increase the value of shareholders.
Elliott Management portfolio manager Jesse Cohn said: "We commend the positive steps taken by NetApp today to improve both the capital and cost structure at the company."
