About 48 people in Colorado Springs will be laid off as part of a restructuring and realignment by Palo Alto, Calif., company VMware.
All told, the company plans to lay off 800 people, including 86 in Colorado — 48 in the Springs and 38 at offices in Broomfield, according to reports.
VMware is a software firm founded in 1998 that creates cloud infrastructure, management and software for data centers. It’s unclear how many people currently work at the Springs’ location, which is at 7450 Campus Drive.
The company announced the layoffs in its fourth quarter 2015 earnings report: “VMware also announced a restructuring and realignment of approximately 800 roles and plans to take a GAAP charge estimated to be between $55 million and $65 million related to this action over the course of the first half of 2016,” the statement said. “The company plans to reinvest the associated savings in field, technical and support resources associated with growth products.”
The move comes as EMC Corp., VmWare’s parent company, is being purchased by Dell for $67 billion.
VMware’s stock price has declined by 40 percent since the purchase was announced, despite strong earnings report during the fourth quarter of 2015. It’s stock price opened Friday morning at $45.18.
The company reported total revenue for the fourth quarter at $1.87 billion, an increase of 10 percent from the fourth quarter of 2014, or up 12 percent year-over-year on a constant currency basis, according to company documents. It’s reporting an expected softer first quarter of 2016, with gains of only 3 to 5 percent.
Before the layoffs, VMware had 18,000 employees in locations around the world.
Company officials were unavailable for comment.