Broadcom cuts workforce at VMware following $69bn acquisition
The exact number of employees affected by the latest cuts remains unclear
The aftermath of Broadcom's $69 billion acquisition of VMware has left thousands of employees in a state of uncertainty, as job cuts sweep through the recently integrated company.
The acquisition, which closed last week, faced regulatory scrutiny in multiple countries, including the US, the UK and China, with the latter providing clearance just before the deal's finalisation on 22nd November.
However, the integration process is now taking a toll on VMware's workforce, with affected employees learning about their jobs being terminated on Monday.
According to an email obtained by Business Insider, affected employees were informed, "Broadcom recently completed its acquisition of VMware. As part of integration planning, and following an organizational needs assessment, we identified go-forward roles that will be required within the combined company. We regret to inform you that your position is being eliminated and your employment will be terminated."
The email offered gratitude for the employees' dedication and service, promising a smooth transition with a generous severance package and a non-working paid notice period.
Expressing a mixture of "disgust and disappointment," a let-go VMware manager spoke to CRN about the prevailing mood within the company. "For months we have not known what would happen, and we have been treated as disposable," the manager said.
The exact number of employees impacted by the latest cuts remains unclear.
As per media reports, Broadcom has informed Colorado regulators of its plans to cut 184 jobs in Broomfield. The job cuts were revealed in a Worker Adjustment and Retraining Notification Act (WARN) notice filed with the Colorado Department of Labor and Employment on Monday.
While the WARN filing typically includes a list of job titles held by the affected workers, the initial filing from Broadcom did not provide specific details. The WARN Act requires companies to provide at least 60 days' advance notification of layoffs when certain criteria are met, emphasising the scale and impact of the workforce reduction.
This development follows previous workforce reductions at VMware before the acquisition's closure.
In September, VMware informed employees that they could either secure a position with Broadcom, be offered a transitional role, or receive a severance package.
Speculation among some VMware employees suggests that Broadcom might spin out certain units as part of its restructuring efforts.
Adding to the uncertainty, several top executives have departed from VMware in the past year, raising concerns among employees about potential culture clashes with Broadcom.
Some employees have expressed worries about the shift to Broadcom's office-centric work culture, especially since the company mandates a return to the physical office, a departure from VMware's remote work policies.
Last week, Broadcom CEO Hock Tan expressed excitement about the acquisition, highlighting the shared focus on customer success and the potential for global enterprises to embrace more secure and resilient private and hybrid cloud environments.
As part of the merger, VMware's operations are undergoing restructuring, with reports indicating that the company will be divided into four divisions.
VMware's CEO, Raghu Raghuram, left the company as the acquisition closed.