January 29, 2016

Major restructuring at VMware following Dell-EMC merger

Around 800 employees were laid off at VMware.

According to a VMware press release, despite company officials reassuring their employees that the last two quarters of 2015 exceeded their growth expectations, the company will lay off around 800 employees. Furthermore, the company's CFO, COO and EVP, Jonathan Chadwick, will be replaced with the newly appointed Zane Rowe on March 1.

In light of the major $67 billion Dell-EMC merger, projected EMC layoffs and plummeting VMware stock, these layoffs, which represent around 5 percent of the company's workforce, may not come as a surprise. However, industry analysts are debating whether these cuts are merely the natural progression of the business into the first quarter, or if they are directly as a result of the monumental Dell-EMC merger.

While this move could be part of the largest plan for Dell to completely restructure its newly acquired companies, it could be the result of previous decisions made prior to the merger. Even so, VMware officials remain confident that the company will continue to grow into the coming year.

"VMware's Q4 2015 was a solid finish to 2015," CEO of VMware Pat Gelsinger noted in the press release. "We were especially pleased with the growth across our portfolio of emerging products and businesses, including NSX, End-User Computing and Virtual SAN. All of these businesses demonstrated strong growth in both Q4 and for the full year, underscoring the momentum we expect to continue into 2016."

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