The Channel logo

News

By | Paul Kunert 25th January 2016 13:24

VMware to 'axe 900 jobs'

Virtzilla not to be outdone by cost-cutting dominant shareholder EMC

VMware is mimicking cost-cutting actions at alpha shareholder EMC by pushing through its own job cull: 900 roles, to be specific, or some five per cent of the 18k-strong global workforce.

The axe is being shined by Virtzilla, reportedly to counter a weaker sales pipeline and share price drop. Let’s face it, nothing gets financial analysts’ attention like an old-fashioned cost purge.

According to a report, VMware might go public on the redundancies this week when it reports the latest set of financials. The company refused to comment.

Staff leapt onto job boards to relay the feelings of concern and vent frustration with the management team.

One wrote, “it’s not looking good right now - the management is desperate to meet the numbers and the sales cannot support it. The only way for them to survive the brunt of Wall Street is to cut highest expense - employees”.

EMC, which currently owns an 81 per cent stake in VMware - the other 19 per cent was floated in 2007 - revealed just prior to Christmas it was slashing costs by $850m.

This is ahead of Dell’s $67bn acquisition of EMC, a deal that doesn’t sit well with some VMware investors who are concerned Dell will get the company on the cheap as part of a buy-back plan.

The share price for the public element of VMware is currently $49.50 versus the 52-week high of $93.43.

EMC has moved VCE into the fold under the guise of a new exec, and in this part of the business, job cuts are also happening. ®

comment icon Read 8 comments on this article or post a comment alert Send corrections

Opinion

Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella
Stranded_ships

Chris Mellor

Thousands of layoffs announced as spinning rust enters its death spiral

Features

STRASBOURG, JUNE 29, 2016: The seat of the European Parliament. by Marco Aprile for shutterstock. EDITORIAL USE ONLY
Plan b, image via Shutterstock
EU workers, new markets: post-Brexit pressure on May & Co
Tough question, pic via Shutterstock
Honest mistake with your licensing? Audit police look at it on a 'case by case basis'