VMware cuts back on Bellevue office space

Palo Alto, California-based app and cloud company VMware Inc. (NYSE: VMW) has reduced its physical footprint in Bellevue.

In a second quarter office market report, commercial real estate firm Broderick Group noted VMware now occupies 75,000 square feet of office space at the City Center Bellevue tower, a reduction of 34,000 square feet.

A VMware spokesperson on Friday confirmed the downsizing to the Business Journal.

"This does not mean we’re reducing our workforce in the region but rather optimizing space to suit their developing needs. VMware’s intent is to move to a more flexible workforce and develop office environments that promote collaboration and flexibility," the spokesperson said in a written message.

The company has adopted a flexible work policy that allows employees to work from an office or home.

VMware had almost 110,000 square feet at City Center Bellevue as recently as September, when Shanis Windland, vice president of human resources, told the Business Journal the company didn't have immediate plans to downsize its Bellevue footprint and had almost 1,000 employees in the Pacific Northwest. The company had only around 18,000 square feet at the tower as recently as four years ago.

VMware offers products and services for cloud infrastructure, cloud management, networking and security, among others. The company was founded in 1998 and went public on the New York Stock Exchange in 2007. In May, Broadcom announced it is acquiring VMware in a cash-and-stock deal worth about $61 billion. The transaction is expected to close in Broadcom's fiscal year 2023. Broadcom is also taking on $8 billion of VMware net debt, according to a release.

In its first quarter fiscal year 2023 results, VMware reported revenue of $3.09 billion, a 3% year-over-year increase.

According to a regulatory filing, VMware had about 37,500 employees as of late January. Employees were in 60 countries, and roughly 15,700 of them worked in the U.S.