While Tintri has refused to say much about its company wide decimation plans, it appears that some top managers are already clearing out their desks and sticking their personal positions into old photocopy paper boxes.
The vendor said last week that it would be cutting over 10 per cent of its workforce by the end of October to “drive efficiencies” in its sales organisation. The cuts were understood to be worldwide.
Tintri’s former senior channel manager Mark Hughes has since confirmed his departure in a LinkedIn post.
The vendor first confirmed the redundancies in a filing with the US Securities and Exchanges Commission last week, revealing that the board of directors approved the cuts on 18 September.
“The restructuring is part of an overall plan to drive efficiencies in the company’s sale organisation and other business units,” the filing stated.
Tintri’s went public earlier this year and its share price tanked by 50 percent since its first day of trading.
In its most recent quarterly filing Tintri recorded a 27 percent year-on-year revenue jump for the three months ending 31 July, up to $34.9 million. Its operating loss however doubled to $49.1 million.
Tintri shareholders are furious and several law firms have announced plans to take action against Tintri on behalf of shareholders over “possible violations of federal securities laws”.
Wolf Haldenstein Adler Freeman & Herz have filed a class action which alleges that Tintri made false and/or misleading statements and/or failed to disclose material information in connection with its IPO.
On September 7, 2017, Tintri announced its second quarter results, reporting revenue at the low end of analysts’ expectations and weaker than expected third quarter guidance. The Company projected revenues to increase just slightly quarter over quarter to $36-$37 million compared to expectations of $42.5 million, the lawyers said. Following this news, Tintri’s stock price dropped over 31 percent to close at $4.55 per share on September 8, 2017, which caused investors harm.