humble3d Posted February 18, 2016 Share Posted February 18, 2016 VMware to lay off 800, CFO resigns SAN FRANCISCO – Cloud company VMware Inc. said Tuesday it will cut 800 positions and that its chief financial officer, Jonathan Chadwick, is resigning. Zane Rowe, now CFO of EMC, will replace Chadwick effective March 1, the company said in a release. The company's (VMW) stock fell 5.13% in after hours trading. VMware made the job cut announcement in a fourth quarter earnings release. Revenue for the fourth quarter rose 10% year-over-year, to $1.87 billion. Non-GAAP operating earnings of $534 million, or $1.26 a share, rose 17% from the year-ago. Analysts polled by S&P Capital IQ had forecast adjusted earnings of $1.25 on sales of $1.85 billion. On a conference call with analysts after its earnings were announced, the company gave a disappointing forecast for 2016. VMware guidance implied that top-line growth, 9% last year, will shrink to the low- to mid-single-digit range. VMware forecast comes at a bad time for EMC Palo Alto, Calif.-based VMware, Inc., which provides cloud and virtualization software and services, is part of a complicated merger arrangement involving its parent, EMC Corp.\ In October, Dell and private-equity firm Silver Lake said they planned to buy EMC for roughly $67 billion, making it the largest deal in technology industry history. EMC shareholders were offered about $24.05 a share in cash and $9.10 of a tracking stock tied to EMC's stake in VMware, which is to remain a publicly traded company under the transaction terms. VMware's stock has sunk about 40% since the October announcement. http://www.usatoday.com/story/tech/columnist/shinal/2016/01/26/vmwares-revenue-slowdown-sends-shares-toward-52-week-low/79372740/ http://www.usatoday.com/story/tech/news/2016/01/26/vmware-lay-off-800-cfo-coo-dell-emc/79363842/ Link to comment Share on other sites More sharing options...
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