VMware keeps mum on layoffs as Broadcom acquisition closes

• There is concern among VMware employees that layoffs are on the horizon
• Broadcom is expected to close its acquisition of VMware. 
• The company is known for laying employees of businesses it acquired in the past. 

Since Broadcom announced plans to acquire VMware, a lot has happened in the tech industry. From tech layoffs by large enterprises to innovations in generative AI, one could say that it has been a topsy-turvy period for tech companies all around the world.

The US$61 billion acquisition, which is just shy of the US$69 billion Microsoft paid to acquire Activision Blizzard, is expected to close soon after getting approvals from major regulatory bodies around the world.  While Broadcom still navigates through some regulatory hurdles in the final stages of the deal, the feelings of VMware staff around the world paint another picture.

According to a statement by Broadcom, the company expects its acquisition of VMware to close on October 30, 2023. On August 21, 2023, Broadcom received final transaction approval from the United Kingdom’s Competition and Markets Authority. This follows legal merger clearance in the European Union, as well as in Australia, Brazil, Canada, Israel, South Africa and Taiwan. In the U.S., the Hart-Scott-Rodino pre-merger waiting periods have expired, and there is no legal impediment to closing under U.S. merger regulations.

“Broadcom is confident that the combination with VMware will enhance competition in the cloud and benefit enterprise customers by giving them more choice and control over where they locate their workloads,” the statement said.

Will there be layoffs for VMware employees?

Since the acquisition was first announced, there have been mixed feelings among VMware employees. For many, the acquisition raised concerns about job security, especially how Broadcom is known for trimming down the workforce of companies it acquired in the past.

Yet, many still believed that things would be different this time. Mainly because the previous acquisitions made by Broadcom involved companies that have not been performing well in the industry as compared to VMware. VMware continues to be doing alright, innovating and meeting the demands of the industry.

In Southeast Asia however, it was a different scenario. Since the acquisition was announced a year and a half ago , there have been several high-level departures in the company. This included country managers of the countries VMware operated in as well as some regional executives. Despite this, the mood among most employees in the region was still positive.

Now, as the acquisition closes, social media and forums started filling up with VMware employees expressing sadness and confusion as to what lay for them ahead. A check on X and LinkedIn showed some employees already preparing for the worst, as they feel layoffs will kick in soon. Some have even come out to voice support towards employees who have been or potentially will be impacted by layoffs at VMware.

“One of the striking aspects of this situation is the incredible talent pool that VMware boasts. The company has thrived because of its dedicated and skilled workforce, many of whom have poured their heart and soul into their roles. It’s crucial for employees to remember that their hard work, talent and passion brought them to this point in their careers. While the uncertainty surrounding the acquisition is undoubtedly nerve-wracking, these qualities that got them here will undoubtedly serve them well in the future,” writes Joseph Chung, Senior Director for Global Business Partnerships at VMware in a LinkedIn post.

In another LinkedIn post, Joel Neeb, VMware Vice President stated, “To those staying to take on a role at Broadcom, I’m confident you’ll continue to deliver the trusted foundation to accelerate innovation under a new banner. To those finding new teams, I can’t wait to see what you do next. If you’re a leader looking for the best talent in the world – this is your chance. Connect with these individuals quickly before they’re pulled onto a new team.”

On

 

Change in business operations?

During VMware Explore in Singapore in September 2023, Raghu Raghuram VMware CEO mentioned in a media briefing that the company could be seeing some layoffs as it was common during any acquisitions. However, he also mentioned that how many VMware staff would be impacted by layoffs and even role changes would only be confirmed once the acquisition closes.

Raghuram also mentioned that VMware remains committed to its partners and clients around the world. In fact, during VMware Explore, the company made a few major announcements in AI, an area that VMware is not only starting to show more focus on but also marking the change from the company’s original purpose in the first place.

While virtualization and the multi-cloud remain the core business of VMware, the acquisition may see the company focus on other areas as well. For partners, the acquisition is also a time of uncertainty as many feel innovation could slow down post-acquisition. There have been rumors that Broadcom may plan to moving CA and Symantec (two companies it previously acquired) under the VMware banner.

With that said, the next few days and weeks could be some stressful times for VMware employees around the world. But one thing is for certain, VMware has been a dominant player and a game-changer in the industry since its inception. Hopefully, it will remain to be a key player once Broadcom completes the acquisition.

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