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EXCLUSIVE: VMware redundancies hit Australia

EXCLUSIVE: VMware redundancies hit Australia

A part of the company's global 'realignment' strategy

Virtualisation vendor, VMware has made some local staff redundant as part of its ‘realignment’ strategy involving 900 job cuts globally, according to several sources.

The vendor declined twice to comment on the local job cuts when contacted by ARN, but several reliable sources have claimed over the past couple of weeks, that some staff have been let go.

One person claimed about 30 staff had been made redundant, but VMware wouldn’t confirm this figure either.

In January, VMware revealed plans to exit some businesses and close some of its facilities as part of its realignment. Total costs of those moves are expected to total $US110 million.

VMware CEO, Pat Gelsinger, at the time called the move a "realignment of resources" on its earnings call.

VMware has added about 6700 workers over the last three years, and will focus on software-defined datacentres and hybrid Cloud services, he said. It was still expanding and planning to add 1000 jobs in 2013.

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

VMware has about 13,800 workers globally.

The company said it had a strong fourth quarter, reporting a net profit of $US206 million, up from $US200 million a year earlier. Revenue rose 22 per cent to $US1.29 billion.

For 2012, the company reported a net profit of $US746 million, up 3 per cent from the previous year, even as revenue rose 22 per cent. This year, VMware is aiming for a revenue increase of between 14 and 16 per cent.

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