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AirWatch sees huge growth as VMware prepares to cut 800 jobs

This blog post is part of our Essential Guide: Chronicling the Dell-EMC merger news

Despite laying off its entire Workstation and Fusion groups, VMware will not discontinue those products.

“Not at all,” a VMware spokesperson said. “In some cases, roles and responsibilities associated with particular businesses will be moved to other regions and office locations.”

As part of a restructuring, VMware plans to eliminate 800 jobs in the first half of 2016. It will put the savings from layoffs toward field, technical and support resources in areas where it see more potential for growth, the company said on a conference call with the media.

Employees who were laid off took to social media to gripe about the job cuts.

Meanwhile, AirWatch and the rest of the company’s end-user computing division saw strong growth numbers in 2015. The AirWatch enterprise mobility management (EMM) platform — which VMware acquired for $1.5 billion in January 2014 — received more than $200 million in total bookings in 2014, growing by roughly 85% to more than $370 million in 2015.

Over the past year, AirWatch has added identity management tools, Windows 10 support, and integrated apps like Boxer, a mobile business tool for email, into its platform, and VMware has aggressively expanded its headquarters in Atlanta.

The success of AirWatch helped VMware’s EUC division as a whole surpass $1 billion in revenue for the first time — the company reported $1.2 billion on the year, a growth of more than 30%. That division, which accounted for about 18% of VMware’s total revenue, now has more than 62,000 customers across its desktop, mobile, identity management and content collaboration offerings, the company said.

VMware reported a total revenue of $6.57 billion in 2015, up 9% from just over $6 billion a year ago. The company also reported $1.87 billion in the fourth quarter, up 10% year over year.

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