Re:VMware to cut 900 jobs
by tedunangst on Monday January 28, 2013 @10:38PM
(#5132190)
Consider that the fully loaded cost of an employee (salary, insurance, stock, taxes, etc.) may be somewhere around $150k. 900 people like that cost 135 million. So basically, most of that 150 million they made is because they didn't have 900 extra people on payroll.
"The company projected annual 2013 total revenues to be in the range of $5.23 billion to $5.35 billion." That's a variation of 120 million right there. Those 900 people could mean the difference between making money with the high estimate vs the low estimate.
Note that the stock price dropped not because it was a bad quarter (it was a good quarter), but because vmware said projected future revenue is expected to be lower than predicted.
"The company projected annual 2013 total revenues to be in the range of $5.23 billion to $5.35 billion." That's a variation of 120 million right there. Those 900 people could mean the difference between making money with the high estimate vs the low estimate.
Note that the stock price dropped not because it was a bad quarter (it was a good quarter), but because vmware said projected future revenue is expected to be lower than predicted.