Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

VMware to cut 900 jobs

bizjournals.com

Post reply on HN
Print view View original

21–30 of 83 posts

Re: VMware to cut 900 jobs

#21

Post by n0mad01 »

i cannot believe it.

  > projecting revenue in the range of $1.17 billion to $1.19 
  > billion, compared with $1.25 billion expected by analysts.
  > VMWare shares fell 15 percent
they're still talking about 1.2 BILLION in revenue. it's never enough ...

Re: VMware to cut 900 jobs

#22

Post by [deleted] »

kjackson2012 wrote: post #13

I shorted VMW just before the close today via puts. It was only 2 contracts and the strike price was at $90. I was going to bet more, I usually go in a position with 10 contracts, but I have some financial obligations coming up so I didn't want to risk too much. I have a few friends that work there. They are happy, but they say that the company lacks any sense of urgency. After Maritz left and more recently Steve Her…

[deleted]

Re: VMware to cut 900 jobs

#23

Post by VeejayRampay »

n0mad01 wrote: post #21

i cannot believe it. > projecting revenue in the range of $1.17 billion to $1.19 > billion, compared with $1.25 billion expected by analysts. > VMWare shares fell 15 percent they're still talking about 1.2 BILLION in revenue. it's never enough ...

Yeah that's why that whole "job creators" / "we built this" routine doesn't really register with me. Let's call it what it really is, an extremely well-designed (I have to recognize) machine to generate as much money while employing as few people as possible to maximize profit. Now what they're doing with all that cash, I'm still wondering to this day. If someone has a sensible answer to that question I'd be really interested in understanding the rationale. And this is a serious question, since I always thought that laying off people was a last resort type of strategy. EDIT: Rephrased to be less inflammatory and more open to discussion.

Re: VMware to cut 900 jobs

#24

Post by ttar »

amitutk wrote: post #3
dobbsbob wrote: post #2

this is why I don't work for mega software corps i bet all these poor bastard devs had to do 'team building exercises', file endless TPS reports, and forced to enjoy TGIF jeans day to indoctrinate you into the company cult then it's layoff time.

and small companies don't fire people?

I was fired from a startup, and I was their best developer. Needless to say, they are now going down. Making the engineering team political will doom any startup.

Re: VMware to cut 900 jobs

#25

Post by tedunangst »

beedogs wrote: post #19
kjackson2012 wrote: post #13

I shorted VMW just before the close today via puts. It was only 2 contracts and the strike price was at $90. I was going to bet more, I usually go in a position with 10 contracts, but I have some financial obligations coming up so I didn't want to risk too much. I have a few friends that work there. They are happy, but they say that the company lacks any sense of urgency. After Maritz left and more recently Steve Her…

Go figure; company goes public, company goes stagnant. Seems like a common theme in the industry.

Counting the EMC years, VMWare has been public for more than half its existence. By your assessment, it's been stagnant since before most people even heard of it.

Re: VMware to cut 900 jobs

#26

Post by tedunangst »

VeejayRampay wrote: post #23
n0mad01 wrote: post #21

i cannot believe it. > projecting revenue in the range of $1.17 billion to $1.19 > billion, compared with $1.25 billion expected by analysts. > VMWare shares fell 15 percent they're still talking about 1.2 BILLION in revenue. it's never enough ...

Yeah that's why that whole "job creators" / "we built this" routine doesn't really register with me. Let's call it what it really is, an extremely well-designed (I have to recognize) machine to generate as much money while employing as few people as possible to maximize profit. Now what they're doing with all that cash, I'm still wondering to this day. If someone has a sensible answer to that question I'd be really i…

Easy answer is easy. Revenue is not the same as profit.

Re: VMware to cut 900 jobs

#27

Post by robomartin »

n0mad01 wrote: post #21

i cannot believe it. > projecting revenue in the range of $1.17 billion to $1.19 > billion, compared with $1.25 billion expected by analysts. > VMWare shares fell 15 percent they're still talking about 1.2 BILLION in revenue. it's never enough ...

Respectfully, I think your comment reveals a lack of understanding of the realities of business.

Please think about what you just said.

What is the difference between revenue and profit?

To investors revenue targets are linked to bottom line profits. That's what they are reacting to.

Re: VMware to cut 900 jobs

#28

Post by SeanDav »

n0mad01 wrote: post #21

i cannot believe it. > projecting revenue in the range of $1.17 billion to $1.19 > billion, compared with $1.25 billion expected by analysts. > VMWare shares fell 15 percent they're still talking about 1.2 BILLION in revenue. it's never enough ...

Even if these numbers were profit and not just revenue, it is is very possible for the shares to drop 15 percent. It happens all the time, although usually not at the 15% level.

The reason can be summed up in one word - expectations. If everyone was expecting a profit of around 1.5 billion (shares would have been trading accordingly) and results come in at 1 billion then clearly there is likely to a significant and immediate drop in the share price.

Re: VMware to cut 900 jobs

#29

Post by robomartin »

VeejayRampay wrote: post #23
n0mad01 wrote: post #21

i cannot believe it. > projecting revenue in the range of $1.17 billion to $1.19 > billion, compared with $1.25 billion expected by analysts. > VMWare shares fell 15 percent they're still talking about 1.2 BILLION in revenue. it's never enough ...

Yeah that's why that whole "job creators" / "we built this" routine doesn't really register with me. Let's call it what it really is, an extremely well-designed (I have to recognize) machine to generate as much money while employing as few people as possible to maximize profit. Now what they're doing with all that cash, I'm still wondering to this day. If someone has a sensible answer to that question I'd be really i…

> Yeah that's why that whole "job creators" / "we built this" routine doesn't really register with me.

That's 'cause you probably never built a business from scratch. Believe me, not one person who has labored to start, launch and run their own business would make the comment you have. Not ONE.

These kinds of statements only come out of a certain place and this is the same place that confused revenue with profit.

This is also the place that doesn't understand that a company has to have a financial buffer in place in order to survive the many variables in business that hit you each and every day. What do you think happens when you have a bad quarter and you still have to make payroll for a couple of thousand employees? And pay leases, rents, power, insurance and other expenses?

Have you ever had the experience of having to use your personal credit cards to make payroll because you had a bad month? Do that and maybe you'll understand why the comment that doesn't "register" with you "registers" 1000% with those of us who live a different reality.

Re: VMware to cut 900 jobs

#30

Post by klearvue »

maerek wrote: post #17

I'm curious what business lines are being trimmed, as referenced in the article. What other lines of business (the phrasing makes me think this is externally facing business, not internal departments) is VMware involved in beyond the core virtualization biz?

Zimbra is one.
Post reply on HN