Broadcom To Lay Off Over 1,200 VMware Staff After Acquisition

Late last month, the US-based semiconductor major completed its acquisition worth $69 billion of VMware.

Semiconductor major Broadcom is set to cut approximately 1,267 employees from VMware, the desktop virtualisation software provider it acquired for $69 billion last month. The plan of job cuts has been submitted to the California Employment Department, and the workforce reduction is scheduled to commence on January 26, 2024, affecting staffers at VMware's Palo Alto office, the media has reported. 

Late last month, the US-based semiconductor major completed its acquisition worth $69 billion of VMware, after receiving regulatory approval in China, in one of the largest takeover transactions in the technology sector, which underwent thorough global regulatory scrutiny. 

This development is being seen as a positive step for US-based Broadcom, allowing the company to leverage VMware's expertise and presence in the software industry.

According to news agency Bloomberg, this move will impact a fraction of VMware's current workforce, which stands at around 38,000 employees.

"We are excited to welcome VMware to Broadcom and bring together our engineering-first, innovation-centric teams as we take another important step forward in building the world's leading infrastructure technology company," said Hock Tan, President and Chief Executive Officer of Broadcom, was quoted as saying.

"Broadcom has a long track record of investing in the businesses we acquire to drive sustainable growth, and that will continue with VMware for the benefit of the stakeholders we serve," he added.

It should be noted that Broadcom has traditionally been eliminating job roles after takeovers to help reduce costs.

To recall, the UK's Competition and Markets Authority (CMA) granted approval for Broadcom's acquisition of VMware in August after conducting a thorough investigation. In July, the European Commission (EC) formally approved the acquisition, subject to certain conditions.

Essentially, Broadcom's investment will be directed towards VMware Cloud Foundation, the foundational software stack supporting private and hybrid clouds.