Software firm VMware to lay off 800 staff globally in first half of 2016

Software firm VMware is yet to break out specific details of which of its global operations will be affected by 800 layoffs announced as part of its 2015 results.

The Palo Alto firm, which employs 700 staff at its base in Cork, said restructuring measures would take place over the opening six months of this year.

“As per the Q4 earnings and press release, we can confirm that... VMware announced a restructuring and realignment of approximately 800 roles over the course of the first half of 2016.

"VMware will reinvest the associated savings in field, technical, and support resources focused on our growth products,” a spokesperson for the company said.

The cloud and virtualisation software specialist, which is 80% owned by EMC, last year signed a lease on another property at its Cork base in Ballincollig, which has capacity to accommodate 350 additional staff.

At the time, in August, EMEA general manager, Jean-Pierre Brulard, said the VMware would “of course” expand its Irish workforce in the furure.

“If we are taking a new building it’s to use it.

"We know at company level we need to extend and need to grow in the next years as well and the more we will grow, the more we will need to have centralised offices and processes... here in Cork,” Mr Brulard said.

In October, computer giant Dell announced it was buying EMC in a $67bn (€61.6bn) deal.

VMware’s share price fell from $72.27 on October 12 when the deal was announced to $55.79, 10 later.

The company’s shares were down almost 8.5% at around midday New York time yesterday at just over $45.