After Broadcom acquired VMware, a leading cloud-computing company, there were notable organisational changes. Bloomberg News reports that around 1,300 California-based employees will end up losing their jobs as Broadcom undergoes a restructuring initiative.
The company is currently assessing strategic choices for two crucial business segments in VMware. Hock Tan, CEO, VMware addressed this in an internal email, emphasising the intention to review the future of the End-User Computing and Carbon Black divisions.
Despite changes from the acquisition, VMware will continue operating with four units: Cloud Foundation, Application Networking and Security, Tanzu, and Software-Defined Edge. This reflects a deliberate effort to uphold clear focus areas during the company’s evolution after the acquisition.
Broadcom successfully concluded the $69 billion acquisition of VMware on 22 November 2023, following regulatory approval from Chinese authorities.
Throughout the past year, top executives have departed from VMware, raising concerns among employees about potential cultural differences with Broadcom, especially concerning the latter’s emphasis on returning to the office. Furthermore, some business transactions faced delays as clients sought clarity on VMware’s future direction.
Broadcom, after acquiring VMware, has been upfront about the need to cut redundancies to boost VMware’s profitability. Recent layoffs are adding to the uncertainty. Since announcing the deal in May 2022, Broadcom has been aiming to make VMware $3.8 billion more profitable by addressing job duplication in various areas.