VMware which is a business arm of EMC is now getting onto a cost cutting spree. As a first step, the company is all set to reduce its employee count on a worldwide note. According to a report from Fortune, the Palo Alto based server Virtualization Company has decided to reduce around 5% of jobs i.e. 900 headcount by this month end.
This was reported after VMware announced its fourth quarter earnings report early last week.
Fortune’s article clearly specifies that all the job cutting drama of VMware has little to do with the company’s performance and is more a result of Dell acquiring storage giant EMC.
It is already a known fact that Dell agreed last year to purchase EMC, for $67 billion. Since, EMC owns around 80% of VMware business stock, Dell plans to bring down the bargain base price of the virtualization giant which has outperformed EMC shares in the past two years.
After bringing the VMware stock down, Michael Dell will sell off the stock on a profit scale.
According to Fortune, VMware has started cutting down its employee count by 5% early this month. First will start cutting down the jobs of high ranking sales people in New York and some global sales managers. The company is also looking to cut down the administration staff count by 12% by this year end.
More details are awaited!