Business

VMware cutting jobs, lowers forecast

PALO ALTO, Calif. — VMware Inc. said Monday that it is cutting 900 jobs, or nearly 7 percent of its workforce, and expects revenue to fall short of Wall Street’s expectations for the current quarter.

The software company, which is majority owned by EMC Corp. of Hopkinton, Mass., also said it plans to exit some lines of business and consolidate facilities. Cost of the job cuts and business changes is expected to be between $90 million and $110 million.

Its stock tumbled $14.58, or 14.8 percent, to $83.74 in after-hours trading.

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VMware expects revenue of $1.17 billion to $1.19 billion for the first quarter. Analysts polled by FactSet forecast $1.25 billion.

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For the final quarter of 2012, VMware earned $205.8 million, or 47 cents per share. That’s up from $200.4 million, or 46 cents per share, in the same period a year earlier.

Adjusted earnings were 81 cents per share in the recent quarter, beating the 78 cents that analysts expected.

Associated Press