This year, NetApp is experiencing an oddity that is only truly apparent when two documents are placed side by side. One is the company’s earnings deck, which is replete with data, elevated guidance, and assured language regarding the need for AI. The other is more subdued: the messages from engineers who survived ten years of cuts only to be informed, as one put it, less than an hour into a shift, the forum chatter, and the WARN-notice math. At the same time, both are true. That’s what bothers me the most.
The San Jose business is performing well by nearly all financial metrics. With record revenue close to $6.57 billion at the end of fiscal 2025, it continued to improve its forecast through fiscal 2026, citing the robust demand for AI-ready storage. When it comes to earnings calls, Kurian, who has been in charge since 2015, has consistently used the word “execution.” Investors appear to have faith in him. After one recent quarter, the stock increased by more than 5%. Why, then, do employees seem to be in the opposite mood?
Rhythm plays a part in the solution. For the past few years, NetApp has made minor cuts practically every quarter, frequently concentrated near the end of one. Employees have observed the timing and come to their own conclusions: the cuts are timed to occur right before the numbers are released, influencing the public’s perception. That interpretation might be too pessimistic. Teams are frequently trimmed by companies for routine reasons. However, people stop believing in coincidence when this pattern is repeated exactly, and you can’t really blame them.
Another issue that frequently arises in conversations among employees is the WARN question. There is a general suspicion that the cuts are being sized and structured to stay just below the larger thresholds at which the federal rule takes effect. It’s really hard to tell from the outside whether that’s an intentional strategy or just how the math works. It’s evident that while coworkers in other areas haven’t even been informed yet, it leaves people speculating and waiting for a manager to confirm a number the following morning.
The disparity in figures unrelated to revenue is what makes the entire situation more difficult. Kurian’s salary has been in the tens of millions, and this amount is mentioned in almost every thread about layoffs, usually in conjunction with a reference to India’s increasing workforce. Whether it’s fair or not, that contrast has taken center stage in how workers interpret these choices on an emotional level. It’s difficult to ignore the fact that a single comp figure can have a greater negative impact on morale than the actual cuts.
It would be unjust to act as though NetApp is alone in this situation. Oracle, Amazon, Meta, and numerous other companies have been hit by the larger 2026 layoff wave, which is primarily attributed to AI efficiency and lower IT spending. Kurian was also responsible for the deep cuts made by NetApp in 2016. Thus, it has a certain grim familiarity. A business that has weathered storms in the past, trimming once more and assuring everyone that it will come out stronger.
As this develops, the disconnect that the layoffs reveal is more unsettling than the layoffs themselves. Even after posting records, a company may feel internally that the people who founded it are being quietly diminished. It’s unclear if that will be sustainable for trust, morale, and the upcoming hiring cycle. Spreadsheets from NetApp appear to be in good condition. By most accounts, its hallways don’t. Furthermore, it’s still unclear which of those two will be more significant in a year.
