Nutanix reduced its employee headcount by 2.5%
As per Nutanix's third quarter earnings conference call, the company has reduced its global headcount of roughly 6,200 employees by 2.5 percent, mostly in sales and marketing positions.
“Efficiency is an important part of our path to profitability. We have increased our go-to-market productivity including more efficient digital marketing spend, increased leverage of our channel partners, and optimized headcount in geographies based on market opportunity. In connection with these efforts, we recently decreased our global headcount by 2.5 percent from within the sales and marketing functions as we continue to refine our go-to-market model,” said Ramaswami, who took over the reins at Nutanix in December. “We expect this action to yield approximately $50 million in annual savings.”
As of January 31, 2021, Nutanix had approximately 6,210 global employees and a reduction of 2.5% in the company’s worldwide headcount means almost 155 Nutanix employees were let go recently.
Nutanix’s CEO said employee layoffs were mainly around where the company had “excess coverage” in specific market regions along with “creating room” to drive renewal sales.
“Of course wherever possible, we tried to not impact quota-carrying reps but look at the non-quota-carrying reps in terms of this process,” said Ramaswami. “So it was fairly distributed, not specific to one particular area.”
Nutanix is concentrating on channel partner enablement and engagement. It is the company’s huge area of focus and investment. “We are building out and leveraging the partner ecosystem more now. We are building out more solution-oriented selling,” said Ramaswami, adding that Nutanix is pushing partners to sell more newer products in its portfolio such as Era, Files and Flow.
Nutanix reported the financial results of its third fiscal quarter 2021, which ended April 30.
Nutanix generated a total of $345 million in revenue, an increase of 8% year over year.
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