About 26% of Nutanix’s global workforce will take two, one-week long unpaid furloughs as the tech company attempts to weather the COVID-19 economy.

This includes almost 1,500 San Francisco Bay area employees, according to a notice filed with the California Employment Development Department. The bulk of these employees (1,434) work at Nutanix’s headquarters in San Jose. Another 11 are in San Francisco, 12 in San Mateo, and eight in Redding. Although the official notice lists these as “temporary layoffs,” a Nutanix spokesperson said they are furloughs and called them “proactive steps to minimize the long-term impact on our team members and our customers.”

Nutanix employs more than 5,700 people globally, according to its website.

The rolling furloughs begin this week and will continue over the next six months.

‘Least Amount of Harm’

“Furloughed employees will maintain their benefits and employment status with Nutanix throughout the week-long furlough periods,” the spokesperson said. “We have carefully scripted these furloughs to minimize the impact on our customers, with all Nutanix services fully available during this time. Our philosophy as we navigate the COVID-19 pandemic is to do the ‘most good’ with the least amount of harm for all of our employees and these furloughs will help us achieve that.”

Nutanix declined to comment on layoffs or furloughs outside of California.

The company’s CEO Dheeraj Pandey began warning that the coronavirus may hurt Nutanix’s business back in February. Since then virtually all major tech companies have followed suit and said that they don’t expect to meet earlier economic forecasts for the rest of the year.

COVID-19 Hits Big Tech, Service Providers

On Alphabet’s first-quarter 2020 earnings call last week CFO Ruth Porat wouldn’t provide second-quarter guidance even when pressed by investors. All she said is that is will be “a difficult one.” The earnings call followed an email that CEO Sundar Pichai sent to employees saying that Alphabet would “significantly slow down the pace of hiring” for the rest of the year.

Microsoft has also frozen hiring except for strategic positions, and AT&T last month hinted that it may cut more jobs as it attempts to ride out the COVID-19 related economic uncertainty.