Broadcom will reportedly cut 1,267 employees at VMware’s Palo Alto office
Broadcom will reportedly cut employees at VMware’s Palo Alto office, following the completion of the $61 billion acquisition of the software player company, which finally closed last month after facing various regulatory hurdles.
According to Bloomberg, the chip maker filed a submission with the California Employment Department outlining the plan, which it said will begin in January 2024. Business Insider further revealed the possibility of additional job cuts in the future, pointing to a leaked internal email from Broadcom CEO Hock Tan, which detailed plans to review VMware’s business units Carbon Black and End-User Computing.
Broadcom had announced plans to acquire VMware in May 2022, in a cash and stock transaction valued at $61 billion. According to Barron’s, the deal is now valued at more than $80 billion. However, some had feared that the merger might be scuttled due to increasing geopolitical tensions between the U.S. and China, including recently announced tightening on semiconductor exports by the United States government. China, though, gave regulatory approval for the deal at the end of November, and because it was the last global regulator that needed to do so, the merger was finally able to go forward.
In a blog post entitled “What a combined Broadcom and VMware can deliver to our customers,” Tan offered his thoughts on the transaction, stating that “three topics are top of mind for customers as it relates to the VMware-Broadcom transaction: multi-cloud, cloud-native apps and pricing.”
Broadcom plans to rename its software group VMware with the conclusion of the acquisition, which it expects to fully complete by the end of next year.
