Connect with us

Company News

Broadcom cuts VMware workforce following $69 billion acquisition

Some VMware employees learned on Monday that their positions would be eliminated following Broadcom’s announcement last week that its deal to acquire the company had closed.

Broadcom first announced in May 2022 that it would acquire VMware for $61 billion and assume $8 billion of its net debt. The company announced that it closed the deal on November 22, shortly after receiving regulatory clearance from China. It also had to receive regulatory clearance from other countries including the US and the UK.

Employees whose positions were eliminated received an email on Monday, viewed by Business Insider, that read: “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.”

“We would like to thank you for your dedication and service. We want to make this transition as smooth as possible, including offering you a generous severance package and providing you a non-working paid notice period,” the email continued.

Currently, it’s unclear exactly how many employees will be affected by the cuts. Broadcom did not immediately respond to a request for comment.

VMware — which, as of February, employed more than 38,000 people — had already cut jobs before the acquisition closed, BI previously reported. VMware sent a letter to employees in September saying that they would be offered a job by Broadcom, offered a transitional role, or receive a severance package.

Some VMware employees speculated that Broadcom could spin out certain units.

Several top VMware executives have left the cloud-computing company over the past year. Some VMware employees said they worried about a culture clash with Broadcom, especially since Broadcom requires workers to return to the office. They also said some deals had slowed as clients waited for news about VMware’s fate. Business Insider

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!