VMware CEO Pat gelsinger CNBC said on Friday that more of the company’s software workers will work remotely due to the coronavirus pandemic.
According to Gelsinger, around 20% of the company’s staff worked at home before the crisis.
“I expect, as we continue in this environment, we will somehow end up in the 50% to 60% [range] over time, and I don’t think we’re atypical, “said Gelsinger on” Squawk on the street. “” We are doubling, tripling the amount of homework. ”
Gelsinger’s comments on Friday are the latest indication that the Covid-19 epidemic will usher in long-term changes in corporate America. Most employees at Jack Dorsey’s two companies, Twitter and Square, have already been told they can work from home permanently. Facebook CEO Mark Zuckerberg recently predicted that up to 50% of the social media giant’s employees could work remotely in the next five to ten years.
“Sometimes it takes a decade to make a week of progress. Sometimes a week gives you a decade of progress,” said Gelsinger. “All of a sudden, education, health care, working from home are making huge progress.”
Gelsinger said these developments give confidence that the technology – software and the cloud, in particular – will be stronger than the global economic climate. For VMware, in particular, many of its business units, such as Workspace ONE and Carbon Black, will be essential for businesses to operate in a world with a more distributed workforce, said Gelsinger.
VMware shares were trading more than 7% on Friday after its quarterly results report Thursday. It posted revenues of $ 2.73 billion, a 12% year-over-year increase and $ 1.52 per share, excluding certain items.
Gelsinger said that VMware has released a “more modest view” of its upcoming quarters due to new ways of doing business. “We have to generate these new projects,” he said, but that requires “new muscles” in a remote work environment.
VMware, based in Palo Alto, California, had about 31,000 workers in 169 offices worldwide as of January 31. Gelsinger said many of the company’s small satellite offices could close. But the Silicon Valley headquarters are still part of the company’s future plans.
“It will go from an office hotel to a collaboration center. I expect our footprint here to remain largely the same, but we will rethink it quite significantly,” he said. “This is where we will come together to innovate, build a community, re-establish culture and connect with people.”