Nutanix CEO Rajiv Ramaswami announced to reduce global headcount to 6000 employees and lay off 2.5 percent employees globally in sales and marketing teams. He made the layoff announcement during third-quarter results on Wednesday.
The US-based cloud computing company has over 6200 employees in January 2021, and 2.5 percent lay off in global employees count would mean nearly 155 employees will be laid off.
Rajiv Ramaswami, CEO of Nutanix, said, “Efficiency is a vital part of profitability. We have increased go-to-market productivity, including more efficient digital marketing spend, increased leverage of the company’s channel partners, and optimized employees in market opportunity-based geographies. As a result, we have decreased the company’s global headcount by 2.5 percent from sales and marketing teams as we continue to refine our go-to-market model.”
The layoff will add 50 million USD in annual savings for the company. Employee layoffs were mainly around where the company had excess coverage in specific market regions and creating room to drive renewal sales, he added.
On Wednesday, Nutanix announced its Q3 financial reports, which ended April 30, 2021. It reported 345 million USD in revenue with an increase of 8 percent YoY basis.
Total sales in Annual Contract Value billings, which Nutanix has focused on driving, increased to 160 million USD in the third quarter, up 18 percent YoY.
Nutanix’s total operating expenses were 450 million USD in Q3 2021, down from 476 million USD during the same period of last year. As a result, it posted a 123 billion USD net loss in the quarter, which is less than 236 million USD for the same quarter the previous year.
Nutanix added over 600 new customers in the third quarter to make a customer base of 19500. In addition, Bain Capital has announced to invest 750 million USD into the company.
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