Broadcom lays off VMware employees after closing its $69 billion acquisition of the company

• Some VMware employees were informed on Monday that their jobs would be eliminated.
• On November 22, Broadcom announced the completion of its $69 billion acquisition of VMware.
• Prior to the closing of the deal, VMware had already begun laying off employees.

Following Broadcom’s announcement last week that its deal to acquire VMware had closed, some VMware employees learned on Monday that their jobs would be eliminated.

Broadcom initially announced in May 2022 that it would purchase VMware for $61 billion and assume $8 billion of its net debt. The transaction was completed on November 22, shortly after the company received regulatory approval from China. It also needed regulatory approval from other countries, including the United States and the United Kingdom.

Employees who had their positions eliminated received an email on Monday that read: “Broadcom recently completed its acquisition of VMware. We identified future roles that will be required within the combined company as part of integration planning and after conducting an organizational needs assessment. We regret to inform you that your position will be eliminated and your employment will end.”

“We want to thank you for your hard work and service. We want to make this transition as easy as possible for you, so we’re offering you a generous severance package and a non-working paid notice period,” the email continued.

It is currently unknown how many employees will be affected by the layoffs. Broadcom did not respond immediately to a request for comment.

VMware, which employed more than 38,000 people as of February, had already cut jobs before the acquisition closed, BI previously reported. In September, VMware informed employees that they would be offered a job by Broadcom, a transitional role, or a severance package.

Some VMware employees speculated that Broadcom might spin off some of its businesses.

Over the last year, several top VMware executives have left the cloud computing company. Some VMware employees expressed concern about a culture clash with Broadcom, particularly because Broadcom requires employees to return to the office. They also stated that some deals had slowed as clients awaited word on VMware’s fate.