In one embodiment, a system for managing a virtualization environment includes a set of host machines, each of which includes a hypervisor, virtual machines, and a virtual machine controller, and a file server splitting system configured to split an existing virtualized file server (VFS) into a set of new virtualized file servers (VFSs), the splitting system configured to select one or more existing file server virtual machines (FSVMs) to be removed from the existing VFS. For each existing FSVM, the splitting system is configured to identify an available FSVM that is separate from the existing VFS, provide resources of the existing FSVM to the available FSVM, incorporate the available FSVM into one of the new VFSs, and remove the existing FSVM from the existing VFS. The splitting system may be further configured to re-direct requests to access storage items served by the existing FSVM to the available FSVM.