Nutanix is laying off 270 employees after warnings in May of supply chain disruptions and higher-than-expected turnover.
CEO Rajiv Ramaswami warned that supply chain disruptions late in the third quarter, as well as higher-than-expected attrition among its sales employees, put pressure on revenue upsides experienced during the quarter.
The layoffs represent four percent of its global workforce. The cuts are expected to be completed by the end of October.
“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 [in the future, Ed.] as we navigate a challenging macroeconomic environment”, the company said.
“We are committed to treating our impacted employees with respect and supporting them through the transition.”
This might seem a little odd given that in May Nutanix reported “solid” third-quarter earnings the company said, with $403 million in revenue, which represented 17 percent year-over-year growth.
However, at the time the company complained about increased hardware supply chain delays resulted in an increasing percentage of orders having start dates in future quarters, or in some cases being delayed, pending availability of hardware.
Nutanix is expecting a rough fourth quarter as a result.
For its fourth quarter, the company is expecting ACV billings to be between $175 million and $185 million, roughly on par with the year-ago quarter when ACV was $176.3 million.
Nutanix told investors to look for fourth-quarter revenue to fall between $340 million and $360 million, a drop of between seven percent and 12 percent from the $390 million Nutanix made in its fourth quarter a year ago.
