Gelsinger, and the company board will take pay cuts in second and third quarter as part of the measures “to support efforts to manage through the current economic uncertainty”.
A company spokesperson said that the move is part of a “thoughtful and prudent plan designed to address the current uncertainty of the COVID-19 pandemic and the overall economic outlook, while ensuring the company has the skills and talent needed to accelerate growth as the economy stabilises”.
“The fundamentals of VMware’s business remain strong, and the company continue to see interest in, and demand for VMware products, solutions and services. The actions the company is taking now will strengthen VMware’s foundation and ensure the company is positioned to effectively navigate the challenging landscape ahead.”
An internal memo warned staff that the steps being taken are to counter the caution customers will have for the foreseeable future.
“The global economy is facing serious challenges brought on by the COVID-19 pandemic and the overall economic outlook remains uncertain. Many of our customers are under financial pressure … they remain cautious in their short- and mid-term investment plans and that means VMware must also be thoughtful and prudent as we navigate the next several quarters.”