VMware To Cut 800 Jobs, Sees Weak 2016
VMware , a California-based company, had forecasted revenue and profit below analyst’s expectations. This suggests that its strong growth in new businesses was not sufficient to overcome weaknesses in its sever-virtualization software.
VMware has announced that it will be getting rid of 800 jobs. The company is facing a difficult time due to its customers moving their key computing infrastructure to cloud i.e. to remote data centers.
The company’s share have fallen by 5 per cent in extended trading while its parent company EMC’s shares have fallen by 1.4 per cent. VMware’s flagship product assists customers to reduce costs by running many operating systems on a single server.
The company has been affected due to slowing economic growth in markets outside the United States that account for nearly half of its revenue. The company has particularly seen weak bookings for its software in China, Russia, and Brazil.