Mental Ward

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Is VMware Preparing Layoffs?

A Barron's blogger reports disturbing news about virtualization's leading light.

Eric Savitz, of Barron's technology investing blog Tech Trader Daily, quotes Trip Chowdhry of Global Equities Research pronouncing major gloom and doom for the tech sector. For example, here are Chowdhry's first two predictions:

    • "Almost every Silicon Valley company is facing deteriorating business conditions and will cut their workforce by 3%-10% by year end.
    • Project cancellations are accelerating in almost every vertical, including financial services, retail, transportation and public sector."

Pretty strong stuff. When it comes to VMware, he says things are similarly depressing. He expects "10% layoffs by year end." I don't know if Chowdhry has sources on this or is just trying to get attention. I also don't know about his previous track record on predictions, since this isn't something I follow closely. I haven't heard mention of any possible layoffs from VMware, and its most recent financial quater was strong. Still, it's worth watching.

Posted by Keith Ward on 11/12/2008 at 12:48 PM


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