Enterprise software company VMware on Tuesday confirmed that it has laid off a small percentage of employees.
The move comes two years after the Dell subsidiary cut around 800 employees.
“We can confirm that there has been a small reduction in force at VMware this week,” a VMware spokesman told CNBC in an email. “Workforce rebalancing is a continual activity across VMware’s businesses and geographies to ensure that resources are aligned with business objectives and customer needs. We continue to recruit in areas of strategic importance for the company.”
It’s unclear exactly how many people were affected by the move; the spokesman wouldn’t specify, or identify the locations where there were cuts. At the beginning of 2016 VMware had nearly 20,000 employees.
Among other things, VMware sells software that lets companies run multiple applications on each server in their data centers. It faces competition from the likes of Cisco, IBM and Microsoft.
In the past couple of years, VMware has expanded its focus on public cloud infrastructure, particularly when it moved to make its software available on top of market leader Amazon Web Services. The tools became available in August, although CEO Pat Gelsinger said in November that he didn’t expect they would be material “this or next year.”
VMware beat analysts’ estimates in the quarter that ended on Nov. 3, with $1.34 in earnings per share, excluding certain items, on $1.98 billion, which was up 11 percent year over year. VMware stock is up more than 60 percent in the past year.
Source: Tech CNBC
VMware cuts a small percentage of employees