Chipmaker Broadcom to lay off 1,300 VMware employees following $69 billion takeover: Report

Chipmaker Broadcom is set to reduce its workforce by approximately 1,300 employees at VMware's California offices subsequent to its takeover of the cloud-computing company, as per a Bloomberg report on Thursday.

According to Insider, citing a leaked email from CEO Hock Tan to staff members, the chipmaker is also contemplating strategic alternatives for two business divisions within VMware.

Broadcom successfully finalised its acquisition of VMware for $69 billion on November 22, post receiving regulatory approval from China. In May 2022, Broadcom made public its intention to acquire VMware for $61 billion, with an additional assumption of $8 billion in net debt. Other countries, including the US and the UK, also required regulatory clearance for the acquisition.

Before the acquisition was finalised, VMware, with a workforce of over 38,000 as of February 2023, had already initiated job cuts. In September, VMware informed its employees through a letter that they would have the option to either join Broadcom, transition into a new role, or accept a severance package.

There were speculations among some VMware employees regarding the possibility of Broadcom spinning off certain units.

Over the past year, several key executives from VMware departed the cloud-computing company. Concerns arose among VMware employees about potential clashes in company culture with Broadcom, particularly due to Broadcom's insistence on employees returning to the office. Additionally, some business transactions experienced delays as clients awaited clarity on VMware's future.

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