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Broadcom announces job cuts following VMware acquisition

EditorHari Govind
Published 28/11/2023, 04:22
© Reuters.
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Following the recent completion of Broadcom (NASDAQ:AVGO)'s acquisition of VMware (NYSE:US90275F1966=UBSS), the company has started to send email notifications to VMware staff about job eliminations. The acquisition, initially proposed in May 2022 for $69 billion, was finalized on November 22 after receiving regulatory approval from China among other nations like the US and UK.

Affected VMware employees received termination notices on Monday. They were informed via email about their role eliminations along with details of a generous severance package that includes a non-working paid notice period. This is not the first instance of layoffs at VMware; previous rounds have established a pattern for post-acquisition transitions, providing employees with the option to stay on with Broadcom or to accept severance packages.

Even before the acquisition closure, job reductions commenced at VMware amid employee concerns regarding potential culture conflicts due to Broadcom's office-centric policy and observed transactional delays during the period of organizational uncertainty. A series of high-level executive departures occurred over the prior year contributing to unease among staff regarding future company culture and operations.

Employees have raised concerns regarding potential cultural differences, especially in terms of office policies. There is also speculation about possible segment spin-offs, including the security division. Additionally, the pace of customer deal closures has reportedly slowed amid the ongoing organizational changes.

The exact number of jobs affected by these recent developments remains undisclosed by Broadcom as of yet.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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