VMware 'rebalances' with layoffs that converge hyperconverged team

Also hosed out many Datrium staff on day one


VMware has made a round of layoffs that appear to be one of its regular consolidations but The Register has learned coincided with some internal re-organisation.

Virtzilla’s official position is that it has made “a limited number of changes to our workforce this month (August 2020). This is part of a regular workforce rebalancing as we realign resources and investments to opportunities at scale.” Staff who were let go have been given “additional support” to reflect the difficult pandemic-times job market.

A spokesperson also told us VMware “continues to recruit in areas of strategic importance for the company.” Which it clearly does as its careers site currently lists over 750 vacancies.

But The Register understands that areas in which layoffs have been most prevalent include development and sales of hyperconverged products and engineers who work to impart skills to the VMware channel. Senior channel execs have also left the company, perhaps a reflection that the reboot of the company’s channel earlier this year did not go well.

We understand that the changes to hyperconverged team means VSAN will no longer have a discrete team, with some job losses and remaining workers becoming part of the core products team. We’ve also heard of similar change in teams working on VMware networking products.

VMware’s official line is that “The changes will help us simplify our organizational alignment and accelerate our delivery of integrated solutions around the five solution platforms (App Modernization, Multi-Cloud, Intrinsic Security, Virtual Cloud Network, Digital Workspace). These areas are mission-critical for our customers and present hundreds of billions of dollars in market opportunity for VMware.”

Another source of job losses is recently-acquired Datrium. Sources tell us that only engineering staff have been retained, with sales and other workers let go almost immediately after the acquisition closed. ®

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