The job cuts are one way Broadcom plans to merge the two companies. The cuts will affect VMware employees whose work overlaps with Broadcom employees. The cuts may also affect employees whose work is not strategically important to the combined business.
Days after reorganizing VMware's operations, Broadcom is finalizing its takeover of the company with a plan to cut about 2,000 people. For now, the job cuts are centered in California.
Broadcom isn't wasting any time. After receiving approval from Chinese authorities, which was the final nail in the coffin of its $61 billion takeover of VMware, the chip design and development company is carefully implementing its plan. Having reorganized the virtualization giant's operations and made initial changes to its sales strategy, the group is now purging its mining staff. And not just a little: the group is cutting staff to the bone, with plans to slash 2,000 jobs, including more than 1,200 in California alone, where overlap between VMware and Broadcom teams is expected to be greatest.
"The total number of employees affected by the aforementioned venture will be 1,267," Jill Turner, Broadcom's vice president of human resources, said in a memo. "This action will not result in the closure of the entire facility, but will affect only certain employees selected for layoff. This planned action is expected to be permanent. The affected employees will not be allowed to displace or displace another employee and will not be recalled to work." Nearly 600 more positions are expected to be eliminated in Washington state, Colorado and Georgia. Other regions are expected to be affected as well, but details are not yet known.
This wave of job cuts is hardly surprising. After buying CA Technologies in 2018 for $18.9 billion, Broadcom cut 2,000 jobs a few weeks later. In an email confirmed by Business Insider, the company told affected employees the following: "Broadcom recently completed its acquisition of VMware. As part of our integration planning and after assessing organizational needs, we identified the future roles that would be required in the combined business. We regret to inform you that your position is being eliminated and you will be downsized."
Job cuts are always a difficult time for the employees who are affected by them. It is important for Broadcom to ensure that these employees are treated fairly and respectfully. The company should provide them with assistance in finding new jobs and compensation.