NEW YORK (TheStreet) -- Shares of NetApp (NTAP) were retreating on heavy trading volume Friday afternoon as the data storage company will reduce its workforce by roughly 6% as part of continued cost cuts.
The layoffs will occur through the end of the fiscal 2017 fourth quarter, according to a SEC filing.
NetApp expects the cuts to result in charges between $50 million and $60 million, mostly in the fiscal 2017 third quarter.
The company had about 12,030 employees as of April 29, but more than 1,000 of them were laid off in an earlier round of cuts, according to the Wall Street Journal.
About 4.79 million shares of NetApp have been traded so far today, well above the company's average trading volume of roughly 2.92 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C+.
NetApp's strengths such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations are countered by the fact that the company's return on equity has been disappointing.
You can view the full analysis from the report here: NTAP
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.