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VMware Takes Restructuring Charge, Changes CFOs

January 26, 2016, 10:09 PM UTC
CA: Companies In Silicon Valley
A logo sign at the headquarters of VMware, Inc., in Palo Alto, California on December 6, 2014. Photo Credit: Kristoffer Tripplaar/ Sipa USA *** Please Use Credit from Credit Field ***
Photograph by Kris Tripplaar—Sipa USA

VMware will take a charge of $55 million to $65 million to cover the cost of layoffs and the company’s chief financial officer, Jonathan Chadwick, is leaving the company, to be replaced by EMC’s chief financial officer Zane Rowe, according to a company regulatory filing on Tuesday.

The CFO change will be effective March 1.

The fact that EMC’s top finance guy will now be at VMware (VMW), was a detail not missed by VMware watchers. EMC (EMC) owns a majority stake in VMware and is trying to negotiate what’s turned out to be a tricky $67 billion merger with Dell, announced in October.

VMware insiders brace for big cuts

“It is significant that Jonathan has elected to leave,” said a former VMware exec who requested anonymity. “That he’ll be replaced by the EMC CFO shows who’s calling the tune.”

For more on the Dell-EMC deal, watch:

As reported, VMware initiated a round of layoffs on Monday. The company said today 800 jobs were affected. EMC has also said it will take an $850 million charge to cover the costs of layoffs there. EMC will release its earnings on Wednesday morning.