NetApp Initiates Dividend, Increases Stock Buyback, Cuts Jobs
NetApp has instituted an enhanced shareholder capital-return plan consisting of another $1.6 billion in stock repurchases over the next three years and a $0.15-per-share quarterly dividend, the company announced yesterday.
The $1.6 billion stock buyback program is in addition to the $1.4 billion remaining in NetApp's existing stock repurchase initiative. The $3 billion total in stock repurchases to be completed in the next three years includes $2 billion in the next 12 months, which includes $1 billion in the next four months.
NetApp also announced that shareholders of record on July 11 will receive a dividend equal to $0.15 a share, payable on July 23. The company said it intends to increase the dividend over time.
NetApp also said it has undertaken a "realignment of resources and restructuring" that will result in a reduction of its global workforce by an estimated 900 employees.The company has about 12,100 full-time employees, so 900 is about 7.4%. The job cuts will result in approximately $50 million to $60 million in pre-tax charges.
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