VMware Said to Cut About 900 Jobs in Restructuring

  • Software maker will report fourth-quarter earnings next week
  • VMware parent EMC agreed to be acquired by Dell in October

VMware Inc., reeling from share declines, weaker bookings and concerns about the acquisition of its parent company, will cut about 900 positions under a restructuring plan to be announced next week, a person with knowledge of the matter said.

The job reductions may be announced on Tuesday when the company reports quarterly earnings or a day earlier, said the person, who asked not to be identified because the plan hasn’t been announced publicly yet. That level of job cuts would represent about 5 percent of VMware’s workforce of 18,000.

VMware’s parent company EMC Corp. is being acquired by Dell Inc., and EMC is also in the middle of a cost-cutting program. Dell and EMC have said the deal makes financial sense because it will boost revenue, rather than enabling them to cut costs. However, the companies refused to comment on additional job losses when the acquisition was announced in October. VMware reported disappointing bookings for the third quarter, with executives saying that uncertainty about EMC, VMware and Dell had hurt demand.

A representative for Palo Alto, California-based VMware declined to comment. Fortune reported on the job cuts earlier.

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