Yedioth Ahronoth has learned that the move will also affect the company's Israeli branch, although the number of workers expected to be fired is unclear at this point.
VMware, which purchased Israeli startup Wanova for some $100 million last year, employs about 200 workers in Israel in three R&D centers and a sales center in Herzliya, Netanya and Jerusalem, and provides cloud and virtualization software and services for organizations in a variety of industries.
The news on the expected cutbacks in VMware follow good quarterly reports, which presented a 22% rise in the company's income, but the 2013 forecasts were disappointing in light of expectations of a global economic slowdown.
Company executives said in an official statement that a reorganization plan will include the dismissal of 900 workers in areas of lesser importance, including products presenting slow growth.
VMware said in response, "We do not provide data beyond what has already been published, so we cannot comment on the situation in Israel."