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$54 billion VMware told employees it's freezing salaries, cutting CEO and other executive pay, and suspending 401(k) matches over the impact of COVID-19 (VMW)

* VMware, the $54 billion IT software giant, told employees it was freezing salaries and suspending 401(k) matches because of the COVID-19 crisis.  * An internal memo obtained by Business Insider said CEO Pat Gelsinger, other top executives, and board members would also take salary reductions. * "Many of our customers are under financial pressure," the memo signed by Chief Financial Officer Zane Rowe and Chief People Officer Betsy Sutter said. "VMware must also be thoughtful and prudent as we navigate the next several quarters." * Click here for more BI Prime stories. VMware, the $54 billion enterprise-IT giant and Dell subsidiary, told its employees on Tuesday it was forgoing salary increases and suspending 401(k) retirement-fund matches in the US amid its struggles with the coronavirus pandemic. A memo to the company's 31,000 employees, a copy of which was obtained by Business Insider, also said it was shifting from a semiannual to an annual bonus plan and would delay its annual promotion-review cycle.  CEO Pat Gelsinger, other top executives, and the VMware board will also take salary reductions in its fiscal second and third quarters "to support efforts to manage through the current economic uncertainty." "The global economy is facing serious challenges brought on by the COVID-19 pandemic and the overall economic outlook remains uncertain," the memo from Chief Financial Officer Zane Rowe and Chief People Officer Betsy Sutter said. "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." Michael Thacker, a VMware spokesperson, confirmed that "there have been a number of cost management changes impacting the VMware workforce." "This is a 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 stabilizes," he told Business Insider in an email. VMware is a major player in the tech market, particularly the cloud, as a pioneer in virtualization, which enables businesses to access disparate computer systems as one network. Got a tip about VMware or another tech company? Contact this reporter via email at bpimentel@businessinsider.com, message him on Twitter @benpimentel, or send him a secure message through Signal at (510) 731-8429. You can also contact Business Insider securely via SecureDrop. Claim your 20% discount on an annual subscription to BI Prime by clicking here. SEE ALSO: Meet the 10 VMware power players helping turn the legacy tech company into a major powerhouse in the cloud computing wars Join the conversation about this story » NOW WATCH: Here's what it's like to travel during the coronavirus outbreak
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