Undisclosed number of workers are leaving as part of “workforce rebalancing” move
VMware is cutting jobs in what the company calls a “workforce rebalancing” effort, though the company has not said how many people will be laid off.
The Lowdown: Some reports have put the number of layoffs in the hundreds and the Silicon Valley Business Journal reported that several executives are among those being let go.
The Details: The company, which has more than 24,000 employees worldwide, said in a statement that the number of job openings it is advertising – which stands at more than 1,250 on its careers website – is significantly more than the number of jobs being cut. VMware also said it will look to find other jobs within the company for some of those workers affected.
Among those reportedly losing their jobs are Chief Customer Officer Scott Bajtos, an 11-year VMware veteran; Mark Ritacco, vice president of operations and customer intelligence, after almost 11 years, and Kate Woodcock, vice president of customer advocacy, after almost eight years.
The job cuts come after VMware bought 10 companies over the past 12 months, including cybersecurity vendor Carbon Black for $2.1 billion, a DevOps specialist and fellow Dell Technologies company Pivotal for $2.7 billion, and most recently Nyansa – which deals in artificial intelligence-based network analytics – for an undisclosed amount.
Background: In its most recent quarter report, VMware in Q3 last year saw revenue increase by 12%, to $2.46 billion, with license revenue growing 10%, to $974 million. Income came in at $621 million.
The Buzz: “We can confirm that there have been a limited number of changes to our workforce this month,” VMware said in a statement. “This is a part of regular workforce rebalancing that ensures resources across VMware’s global businesses and geographies are aligned with strategic objectives and customer needs. This is not uncommon in the fast-changing technology industry. … We continue to recruit in areas of strategic importance for the company.”