VMware Layoffs 2021: Targeted Staff Cuts Though Hiring Continues
VMware has confirmed targeted layoffs. The cuts impacted fewer than 1 percent of VMware employees, and the multi-cloud software company remains in hiring mode on multiple fronts — which means net headcount will actually grow.
VMware had roughly 33,000 employees heading into 2021, so the sub-1 percent cuts likely involved roughly 300 or fewer employees. The cuts involved “workforce rebalancing” — which typically means VMware made cuts in slow-growth or no-growth business areas. CRN was first to report the job cuts.
On the flip side, VMware is seeking to make hires in fast-growth software markets. Indeed, the company is seeking to fill 1,600 open positions worldwide — roughly 500 of which are in California, according to Silicon Valley Business Journal.
VMware Software Business Evolution
Generally speaking, VMware has successfully expanded from server virtualization to multi-cloud management and hybrid cloud management. Key efforts have include network virtualization/software-defined networking (SDN), SD-WANs, unified endpoint management (UEM) and cybersecurity — including the Carbon Black endpoint security acquisition.
VMware abandoned its own public cloud build-out, and instead partnered closely with Amazon Web Services (AWS) to introduce VMware Cloud on AWS. VMware also has working relationships with Google Cloud Platform and some dealings with Microsoft, despite various competitive issues.
Still, VMware’s business transformation has involved occasional layoffs. Moreover, the company froze some salaries and cut some employee benefits amid the coronavirus pandemic. VMware parent Dell Technologies made similar cost-control moves during the pandemic.
VMware Seeks CEO to Succeed Pat Gelsinger
Meanwhile, VMware is also seeking a CEO to succeed Pat Gelsinger — who is exiting the software company to lead struggling chip giant Intel. Gelsinger has been VMware’s CEO since 2012.
Zane Rowe, VMware’s chief financial officer, is Interim CEO until the board names Gelsinger’s successor.