Pure Storage has laid off up to 275 employees globally

Pure Storage Implements Workforce Rebalancing Initiative Amidst Revenue Growth

Pure Storage, a leading provider of all-flash arrays, has recently undergone a workforce rebalancing initiative, resulting in the layoff of up to 275 employees globally. The affected areas include data protection, AI & analytics, database, alliances, and unstructured data sectors, constituting approximately 4 percent of Pure’s total workforce.

According to a spokesperson from Pure, this initiative was undertaken to align the company’s employees with its strategic priorities and areas crucial for business growth and innovation. The impacted employees were given the opportunity to apply for open positions within the company and offered outplacement services to facilitate their job search outside of Pure.

This latest round of layoffs comes after previous job cuts made by Pure in January and April of the previous year. Despite these workforce reductions, Pure Storage has announced positive financial results for its Q3 of fiscal 2024, ended November 5. Revenues for the quarter saw a 13 percent year-on-year increase, reaching $762.8 million, with a recorded profit of $70.4 million, compared to a minor loss in the same period of the prior year.

However, the Q4 outlook appears less optimistic, with forecasted revenues of $782 million, representing a decline of 3.5 percent year-on-year. Several factors contribute to this downward trend, including a shift towards a more subscription-based business model, which impacts income, and delayed shipments to a $41 million 5G telco customer.

Industry sources have also indicated a competitive landscape, with Hammerspace making strides at Meta, a significant FlashBlade customer, particularly in the large language model training arena. Meta, like other large web-scale customers, requires a POSIX-compliant file system rather than an HTTP/RSST object system, according to sources familiar with the situation.

Meta’s infrastructure involves building 1,000 node clusters with 100 Tbps bandwidth, utilizing layer 3 switching and lacking RDMA-capable networks. While Meta initially utilized Pure Storage’s FlashBlade, it found the solution to be limited and not commercially off-the-shelf (COTS).

In response to scalability and cost-efficiency requirements, Meta explored alternatives such as Hammerspace’s relatively inexpensive Linux storage boxes, deemed suitable for large-scale operations. VAST Data, another contender, was noted for its faster growth compared to Pure, as reported by an IDC-based table published in the Data Gravity newsletter.

The competitive landscape in the storage solutions market underscores the importance for companies like Pure Storage to adapt to evolving customer needs and market dynamics. While navigating challenges such as workforce adjustments and revenue forecasts, Pure remains focused on innovation and strategic alignment to sustain its growth trajectory in the highly competitive technology industry.