VMware, Inc.(NYSE:VMW) has declared late Monday that it will lay off 900 job positions in a venture to put its focus on high potential businesses. This move comes after the realization that in spite of strong profit margins, growth has not been impressive.
The company has announced that the job cuts will take place in sectors like SlideRocket, the online presentation software of the company. VMware has mentioned that the company is expanding and has plans of adding a net 1,000 jobs in the year 2013.
Pat Gelsinger, the CEO, thinks that the move is a rearrangement of resources on an earnings call. VMware has employed around 6,700 workers in the last 3 years. The company will not put its focus on software-based data centers and hybrid cloud services.
He stated that the move includes moving talents to new posts that uphold growth prospects and a few embattled head count reductions.
The company presently has 13,800 workers.
VMware has said that it has enjoyed a strong fourth quarter, recording a net profit of US$206 million.
The company claims that its software is used by all the companies of Fortune 100 and 96% of Fortune 1000 companies. It has experienced difficulties in expanding its business in the US. It has experienced a drop in contracts from the federal government in the year 2012.
Shares of VMW tumbled 22% in Tuesday’s session.
In other news, Apple Inc.(NASDAQ:AAPL) has introduced another version of its fourth generation iPad – 128 GB iPad. This happens to twice the storage of the highest capacity of the last iPad version.
The new iPad is supposed to go on sale on 5th February. It will be available in both white and black body colors. It will be priced at $799 for the Wi-Fi-only version. The version that comes with both Wi-Fi and cellular network access will be priced at $929. Like the other versions of fourth generation iPads, this too will come with A6X chip, iOS 6.1, 9.7 inch Retina Display and FaceTime HD Camera.