Broadcom cuts not less than 2,800 VMware jobs following $69 billion acquisition

Broadcom cuts at least 2,800 VMware jobs following $69 billion acquisition


Broadcom introduced again in Could of 2022 that it could purchase VMware for $61 billion and tackle an extra $8 billion of the corporate’s debt, and on November 22 of 2023 Broadcom stated that it had accomplished the acquisition. And it seems to be like Broadcom’s first massive transfer goes to be layoffs: in accordance with WARN notices filed with a number of states (catalogued right here by Channel Futures), Broadcom can be shedding not less than 2,837 workers throughout a number of states, together with 1,267 at its Palo Alto campus in California.

As Channel Futures notes, the precise variety of layoffs may very well be larger, since not all layoffs require WARN notices. We have contacted Broadcom for extra details about the overall variety of layoffs and the sorts of positions which might be being affected and can replace if we obtain a response. VMware has round 38,300 workers worldwide.

The WARN notices checklist the rationale for the layoffs as “financial,” however present no additional clarification or justification.

Broadcom nonetheless makes most of its cash from its wired and wi-fi communication merchandise and different chips; 78 p.c of the roughly $8.9 billion that Broadcom made in Q3 of 2023 was from its “semiconductor options” section. However Broadcom has been making an attempt to purchase its method into enterprise software program for years now, together with an $18.9 billion acquisition of CA Applied sciences in 2018 and a $10.7 billion acquisition of Symantec in 2019.

Regardless of the layoffs, VMware will stay central to Broadcom’s enterprise software program technique. The corporate’s Broadcom Software program Group can be renamed VMware, and the corporate is reportedly planning to emphasise software program subscriptions relatively than one-time gross sales to spice up income. Other than that, we do not know many particulars about what a Broadcom-owned VMware will finally seem like. The one VMware product talked about at any size in Broadcom CEO Hock Tan’s publish concerning the acquisition is VMware Cloud Basis.

Previous to being owned by Broadcom, VMware had been a part of Dell, an organization higher identified for its client and enterprise PCs, servers, and workstations. Dell offered off all of its shares of VMware in 2021, although Michael Dell himself remained the chairman of VMware’s board.


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