A Nutanix 8-K SEC filing reveals it’s planning to chop 270 employees, 4 percent of its workforce.
This follows “a review of its business structure and after taking other cost-cutting measures to reduce expenses. The headcount reduction is part of the Company’s ongoing efforts to drive towards profitable growth,” the hyperconverged software player says in the dcoument.
Nutanix expects to complete most of the headcount reduction by the close of its fiscal quarter ending October 31 (Q1 FY 2023). This action should incur a pre-tax charge in the range of $20 million to $25 million during this fiscal quarter, involving one-time severance and other termination benefit costs, all of which are expected to result in future cash expenditures.
This action comes before Nutanix has published its latest fiscal Q4 and full 2022 results. Third fiscal 2022 quarter results were announced in May, with revenues of $404 million, up 17 percent year-on-year, and a net loss of $111.6 million. It warned that supply chain issues with hardware partners and sales force attrition would cause weaker-than-expected sales for the remainder of its financial year.
President and CEO Rajiv Ravaswami said at that time: “We expect that these challenges in the supply chain are likely to persist for multiple quarters.“
Nutanix says it will announce its full 2022 results after US markets close on August 31.
Earlier this month, chief revenue officer Dominick Delfino resigned to join another company.
Nutanix has updated its outlook for its fiscal fourth quarter and full fiscal 2022 year with revenues, ACV billings, and non-GAAP gross margin expected to be at or above the high end of the respective prior guidance ranges and non-GAAP operating expenses expected to be in line with the prior ranges.
The hyperconverged pioneer is currently in a dispute with MinIO over its allegedly unacknowledged use of MinIO open-source object code. MinIO has revoked its license to use the code and expects Nutanix to stop shipping it as part of the Nutanix Object software.
We have asked Nutanix for further comment on the proposed job losses and the company said: “As an industry leader, Nutanix is constantly evolving to ensure we are appropriately positioned in the marketplace. Following a careful review of our business structure and after taking other cost-cutting measures to reduce expenses, we made the difficult but necessary decision to reduce our global headcount by approximately 4 percent. As hard as it is to make decisions that impact employees, we believe this will enable Nutanix to be more efficient and flexible going forward as we navigate a challenging macroeconomic environment. We are committed to treating our impacted employees with respect and supporting them through the transition.”