VMware said that it will cut 800 jobs and restructure to better invest in growth areas as the company delivered a better-than-expected fourth quarter. In addition, VMware CFO and operating chief Jonathan Chadwick will leave the company.
The restructuring wasn't totally unexpected for VMware, which is slated to be a tracking stock when EMC is acquired by Dell. VMware said that it will take a charge of $55 million to $65 million over the first half of the year.
VMware said it will invest the savings from its restructuring on "field, technical and support resources associated with growth products." VMware added that Chadwick will be replaced by Zane Rowe as CFO. Rowe, who held leadership roles at Apple and UnitedContinental, takes over as CFO March 1.
Amid the moving parts, VMware reported a solid fourth quarter. The company reported fourth quarter earnings of $373 million, or 88 cents a share, on revenue of $1.87 billion, up 10 percent from a year ago. Non-GAAP earnings were $1.26 a share in the fourth quarter.
Wall Street was expecting VMware to report fourth quarter earnings of $1.25 a share on revenue of $1.85 billion.
VMware said transitions to new products are paying off as NSX, End-User Computing and Virtual SAN are all growing well.
For the year, VMware reported earnings of $997 million, or $2.34 a share, on revenue of $6.57 billion, up 9 percent from a year ago.