This study presents the optimal distribution of cuts or segments in both the constrained and constraining layers of a rotating sandwich beam. The governing equations of motion of a rotating constrained multilayer sandwich beam is developed in the finite element form. The validity of the proposed finite element formulation is demonstrated by comparing the results with those obtained from the available literature and Ritz formulation. The significance of the number and location of the segmentation(s) on the modal damping factor is investigated by using the strain energy approach and the finite element method. An optimization problem is formulated by combining finite element analysis with genetic algorithm-based optimization technique to identify the optimal locations for the segments to achieve maximum modal damping corresponding to the first five modes of flexural vibration, individually and simultaneously. The simulations suggest that the modal damping factors are strongly influenced by the location and the number of cuts on a rotating multilayer sandwich beam. © The Author(s) 2013 Reprints and permissions: sagepub.co.uk/journalsPermissions.nav.