The global economic turmoil is starting to take its toll on the rank and file of the enterprise storage industry. NetApp Inc., the second largest array maker by revenue, this week launched a drastic cost-cutting effort to mitigate the slowing international demand for its hardware that will see nearly 1,500 staffers laid off over the next five months.

The figure represents 12 percent of its total workforce. The regulatory filing in which the vendor disclosed the cuts doesn’t specify which parts of its business will be affected by the move, but it’s safe to assume the flash storage business won’t feel the brunt of the blow. The unit is the one of the main sources of revenue growth for NetApp, a fact that was reiterated during the earnings call that management held against the backdrop of the downsizing announcement. Chief executive George Kurian proudly told investors that the division’s annual run-rate soared to nearly $600 million during the third quarter ended January 29.

That momentum didn’t carry over to the company’s core disk storage business, which dragged down its top-line to $1.39 billion from $1.54 billion a year ago. The unit is likely the biggest target of the upcoming restructuring effort given that the shift away from spinning media is only expected to accelerate with time. The trend is also factoring into the workforce reduction initiative that NetApp archnemesis EMC Corp. unveiled last month, which is shaping up to be considerably bigger.

The vendor has yet to reveal the specific number of jobs that it’s planning to terminate, but did disclose to regulators that $250 million has been set aside to cover the costs of the layoffs. In comparison, NetApp expects to spend only $60-$70 million on its restructuring, which should come as some consolation to its workforce.

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