Item 2.05 Costs Associated with Exit or Disposal Activities
On January 31, 2023, NetApp, Inc. (the "Company") announced a plan to
restructure and reduce the Company's workforce as a part of its planned efforts
to realign resources to prioritize investments against its biggest opportunities
in light of the macroeconomic challenges and reduced spending environment that
continue to impact the Company. In connection with these actions, the Company
expects to reduce its worldwide headcount by approximately 8%. The reduction in
workforce is expected to be substantially implemented through the end of the
fourth quarter of fiscal 2023.
The Company expects to incur aggregate charges of approximately $85 to $95
million consisting primarily of employee severance and benefit costs associated
with the restructuring. The Company expects that most of these charges will be
cash expenditures and that it will recognize the majority of these charges in
the third quarter of fiscal 2023. The estimated charges that the Company expects
to incur are subject to a number of assumptions, and actual results may differ
materially from these estimates. The Company may also incur additional costs not
currently contemplated due to unanticipated events that may occur as a result
of, or that are associated with, its workforce reduction.
Item 7.01 Regulation FD Disclosure
A copy of an e-mail sent from George Kurian, the Company's CEO, to the Company's
employees regarding these actions is attached to this Current Report on Form 8-K
as Exhibit 99.1 and incorporated herein by reference.
The information contained herein and in the accompanying exhibits shall not be
incorporated by reference into any filing of the Company, whether made before or
after the date hereof, regardless of any general incorporation language in such
filing, unless expressly incorporated by specific reference in such filing. Such
information shall not be deemed "filed" for purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of
1933, as amended.
Forward Looking Statements
This Current Report on Form 8-K contains forward-looking statements including,
but not limited to, statements related to the expected benefits of and timing of
the Company's workforce restructuring plans, which are any predictions,
projections or other statements about future events based on current
expectations and assumptions that are subject to risks and uncertainties, which
are described in our filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements, and the
Company undertakes no duty to update any forward-looking statement to conform
the statement to actual results or changes in the company's expectations.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description
99.1 E-mail announcement to Company employees, dated January 31,
2023
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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