Home Computing VMware is laying off 577 workers in Austin, WARN notice says

VMware is laying off 577 workers in Austin, WARN notice says

Cloud computing company VMware is laying off 577 employees in Austin as part of a nationwide job reduction.

Cloud computing company VMware Inc. has announced plans to lay off hundreds of employees in Austin.

The layoffs of 577 workers will occur at the company’s office at 6500 River Place Blvd., according to a WARN letter sent to the Texas Workforce Commission.

A WARN letter, which stands for Worker Adjustment and Retraining Notification Act, is a federally mandated notice employers must give local governments in the event of major layoffs.

VMware was previously owned by Round Rock-based Dell Technologies. Broadcom acquired the company in a $61 billion cash and stock deal last year. The transaction closed in November.

“This will not result in closure of the entire facility, but will only impact certain employees selected for layoff,” Jill Turner, Broadcom’s vice president of human relations, said in the letter. “The planned action is expected to be permanent.”

In the letter, Broadcom said the layoffs would begin Jan. 26. The company did not immediately respond to a request for additional comment.

VMware has roots in the Central Texas technology ecosystem. In 2016, Dell Technologies acquired EMC Corp., which held a majority stake in VMware. In 2021, Dell spun off VMware.

The Austin job cuts are part of a nationwide pullback by VMware, which is based in Palo Alto, Calif. It has also announced a shutdown of its office in Boston, which will result in 150 job reductions. In addition, the company is cutting at least 184 employees in Broomfield, Colo., and plans 217 layoffs in Atlanta, according to WARN letters and news reports.

Austin feeling tech layoffs across the board

The VMware cuts follow news earlier this month that tech outsourcing giant Cognizant Technology Solutions is laying off 65 Austin workers at Apple Inc.’s campus in North Austin.

The employees losing their jobs are working at Apple’s Americas Operations Center at 12545 Riata Vista Circle in North Austin, according to a WARN letter sent to the Texas Workforce Commission. Apple is one of Austin’s largest employers, with about 7,000 workers here, according to the Austin Chamber of Commerce.

Cognizant, a New Jersey-based information technology consulting and outsourcing firm, said in May that it was planning to lay off 3,500 employees from its 355,000-person global staff and reduce its office space in a bid to cut costs.

More: Tech outsourcing giant Cognizant to lay off dozens of Austin contractors linked to Apple

In June, Cognizant had filed plans to lay off 56 Austin-based contract employees at an office tower at the Domain that is home to Facebook parent Meta’s Austin operations. Cognizant declined to confirm whether the layoffs were connected to Facebook.

The company’s latest round of layoffs is scheduled to take place beginning Dec. 8, and those affected have been notified, according to the WARN letter.

Accenture cuts hundreds of Austin jobs

Cognizant’s reduction follows the October announcement by tech staffing firm Accenture that it would cut about 350 positions in Austin, marking the third time the company has laid off hundreds of employees in Central Texas this year.

The global contract firm focuses on information technology services and consulting. It has contracts globally with large technology giants to provide workers, but the tech industry at large has been increasingly looking to reduce costs and jobs in recent years. Accenture is considered one of Central Texas’ largest technology employers.

More: Accenture to slash hundreds of jobs in Austin for the third time this year

According to Accenture’s WARN notice, the company is cutting 351 people in Austin at its 11800 Alterra Parkway location at the Domain, marking the second time this year the company reduced positions at that location. The latest notice said the layoffs would not result in an office closure.

In the notice, Accenture said the layoffs were because of a “change in client contract requirements and are expected to be permanent.” The company said the positions will be cut between Dec. 8 and March 28.

VMware, Cognizant and Accenture’s cuts come as the technology industry nationwide has faced a rocky several years with declining customer demand and job cuts. In Austin, those cuts have occurred at companies including Facebook parent Meta, Google and Dell Technologies.



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