by Joe Panettieri • May 5, 2020
VMware is freezing employee salaries, cutting executive pay and suspending 401K retirement plan matching, Business Insider reports. Among the article takeaways:
VMware on March 26 withdrew its Q1 and FY21 guidance, citing the coronavirus pandemic.
The cloud and virtualization software company was solidly profitable and growing ahead of the coronavirus pandemic. Indeed, VMware disclosed in February 2020:
VMware, publicly held and backed by Dell Technologies, has successfully extended its business from server virtualization to network, storage and overall software-defined data center (SDDC) capabilities. The company has also boosted its desktop as a service (DaaS), and cybersecurity offerings — including the Carbon Black endpoint security acquisition.
After abandoning a VMware-centric public cloud, the company has successfully built various services on third-party clouds. Noteworthy moves include the VMware Cloud on AWS strategy, which numerous public cloud MSPs now back.
Like VMware, numerous technology companies are taking steps to cut costs and conserve cash. The obvious reason: Nobody knows quite how long the coronavirus pandemic will last, nor how deeply it will impact the overall world economy.
Other recent moves include hyper-converged infrastructure (HCI) infrastructure provider Nutanix confirming furloughs, and OpenText (owner of Carbonite and Webroot) cutting 5 percent of staff and temporarily reducing salaries until mid-2021.
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