According to Barron's:
NetApp (NTAP) has “quietly” reduced its global workforce by more than 500 people, according to a research note today by Broadpoint.Amtech analyst Brian Marshall.
Marshall reports that he has confirmed that NetApp has cut its staff by about 6% from a base of 8.380 jobs in October 2008. Marshall contends that this is “a material step by management,” which indicates that “the company is not only pragmatic about the current challenging economy but also serious about generating operating leverage going forward.” Marshall estimates that the job cuts will save the data storage systems company $100 million to $125 million a year, boosting pro forma EPS by 25-30 cents a share.
Marshall maintains his Buy rating and $19 price target on the stock.
NetApp today is down $1.44, or 8.8%, to $14.86.
