Thread regarding VMware layoffs

"Hock noted the missed upside opportunity when Shankar failed to partner with global system integrators. That strategic gaff impacted the current pipeline outlook. VMW could have been a leader in the remote and distributed working arena. Partnerships matter."

This was a huge miss. Citrix managed to hold on to some of their large GSI partnerships and this made a strategic difference in some of the key verticals like banking/finance and healthcare, where they will continue to hold footprints for a while, but overall it's a stagnant if not shrinking market, and Microsoft is probably the only one pulling in sizable new logos while VMW and Citrix are still trying to get existing customers transitioned to subscription without shedding licenses.

Just use telnet

"VMW could have been a leader in the remote and distributed working arena. Partnerships matter."

Maybe the Partners team will survive the planned cuts in Renu's marketing org.

Stop making assumptions, you're not very good at it.

FYI, several business and tech media articles mention that they follow this site for story info and leads. No worries, you are 'anonymous' so Rob is unlikely to find you.

“Now he's on the record” yes everyone knows the layoff website is “the record” 🤦‍♂️

Dude, you shouldn't have mentioned Rob's name. Now he's on the record and tech journalists will reach out to him for validation of what you shared, and request comments.

"We will see what’s what in a few weeks."

LOL, I thought we were done with those painful SOON forecasts!

The inverse will happen, and the headcount will shrink. Example: there are still way too many sales and customer success people chasing small $k renewal opportunities.

It's an unprofitable business model and Hock Tan will not fund EUC largesse.

Hock noted the missed upside opportunity when Shankar failed to partner with global system integrators. That strategic gaff impacted the current pipeline outlook. VMW could have been a leader in the remote and distributed working arena. Partnerships matter.

“The manager that told you this clearly is not involved in BU planning. Not true.”

You have no idea what you are talking about. EUC is about to start hiring in mass. The manager that told us this that is not involved in BU planning was Rob Ruelas. As usual the Silicon Valley bias looks at everything EUC does as cr-p. Keep talking sh-t. We will see what’s what in a few weeks.

“ The manager that told you this clearly is not involved in BU planning. Not true”

Will see in the next few weeks when all the reqs go live

"I heard that EUC were going to be hiring a significant number of people once the acquisition was completed?"

The manager that told you this clearly is not involved in BU planning. Not true.

“Also, perhaps some of the EUC BU employees can transfer to other BUs.
Are internal transfers going to be an option for those affected employees?“

I heard that EUC were going to be hiring a significant number of people once the acquisition was completed?

Also, perhaps some of the EUC BU employees can transfer to other BUs.
Are internal transfers going to be an option for those affected employees?

Maybe the EUC P&L will improve following headcount cuts. Then it might be more attractive to a Private Equity buyer who won't have to absorb those severance costs.

Okay, I'm not going to disclose numbers here, but the P&L of this BU doesn't fit the financial model of a profitable opportunity. VMW has a very small market share, relative to Microsoft and Citrix (leaders, by a big margin), and the share hasn't changed much.

Also, the EUC market isn't growing overall, and that's why Gartner and IDC stopped reporting. So, if you work at this BU and your manager was only sharing good news (small wins and predictable SaaS subscription renewals), then you have a limited perspective.

Billion dollar business doesn't mean much of there is no growth.

While we are here though WS1 posted negative growth for a few quarters while Horizon was in high single digits recently. Horizon had a solid few quarters after we forced subscription licenses which of course generated revenue from perpetual license turn in.

Microsoft has been taking marketshare from both horizon and ws1 for awhile

“ Once again, we know from the audit that was done for a PE suitor that this is untrue. The revenue and profit for the EUC BU has been lackluster”

A billion dollar SaaS ARR business is lacklustre?!? What are you smoking?

“ So, please stop sharing misinformation that gives this BU's employees false hope”

Are you expecting mass layoffs with EUC? As that is not going to be the case

"The EUC BU has continually hit and exceeded targets year on year, and is the most deployed software across the BUs outside of vsphere."

Once again, we know from the audit that was done for a PE suitor that this is untrue. The revenue and profit for the EUC BU has been lackluster. If it were truly a top performer then it would be on AVGO's radar, which it's not -- and for good reasons.

So, please stop sharing misinformation that gives this BU's employees false hope.

“ Hock and his team are focused on the high-priority issues. And this BU clearly isn't one of them.”

Correct. The EUC BU has continually hit and exceeded targets year on year, and is the most deployed software across the BUs outside of vsphere. It’s not shelfware like Tanzu, NSX, vSAN etc. Hocks focus is making that area of the business profitable, which is why he’s having to do so many HC cuts due to its overly bloated nature. He’s not focused on EUC as it’s not broken.

Note, the EUC BU has several Sr Directors, Directors and Senior Managers with few direct reports. Those people will likely see a quick determination in their status, if they've not already been terminated during the previously mentioned performance-related reductions.

The EUC BU is a gray area, primarily because AVGO showed little interest in the legacy UEM and VDI product categories. Frankly, it's been a distraction. The VMW core business continues to be its focal point, and the turnaround will be a significant challenge.

The bottom line is don't assume anything about the disposition of the EUC BU. Hock and his team are focused on the high-priority issues. And this BU clearly isn't one of them.

There have already been some performance based layoffs in EUC, just not the mass layoffs that have happened in other BUs. That is why they thank the people that are not moving on in EUC.

Hard to tell/guess, but some layoffs would make sense to up the revenue/employee numbers a bit.

No, its being parcelled off for sale so no decisions yet. The mail said that bc are going to support it in existing capacity until a decision is made but that does not mean an 9ffer either.