VMware cuts jobs as sales increase but profits disappoint

Virtualisation software supplier VMware has announced 900 job cuts despite increasing its sales by 22% in the past year

Virtualisation software supplier VMware has announced 900 job cuts despite a 22% increase in sales over the past year.

VMware’s sales in 2012 totalled $4.61bn, bolstered by fourth-quarter sales of $1.29bn. Profit for the year was $745.7m, compared with $723.94m in 2011.

The job cuts are an attempt to refocus resources, according to CEO Pat Gelsinger, and the company will actually see a net increase in staff of 100 in 2013. 

"The cuts include shifting talent to new roles that support our growth opportunities, as well as some targeted headcount reductions," said Gelsinger.

VMware has added almost 7,000 staff over the past three years. 

It will now concentrate on software-defined datacentres and hybrid cloud services.

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VMware’s US and international sales each increased 22% to $2.2bn and $2.3bn from 2011 respectively.

Some of the job cuts will come from within VMware’s SlideRocket business. VMware acquired online presentation platform supplier SlideRocket in 2011.

Image: Comstock/Thinkstock

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