Lucas Jackson/Reuters
- Many VMware employees learned Monday their positions would be eliminated.
- Broadcom announced it closed its $69 billion acquisition of VMware on November 22.
- VMware had already started cutting jobs prior to the deal closing.
Many VMware employees learned Monday that their positions will be eliminated following Broadcom closing its acquisition of the company.
Broadcom first announced in May 2022 that it would acquire VMware for $61 billion and assume $8 billion of its net debt. It announced that it closed the acquisition on November 22, shortly after receiving regulatory clearance from China. Prior to that, it also had to receive regulatory clearance from other countries including the US and the UK.
Employees whose positions were eliminated received an email on Monday viewed by Business Insider that said, "Broadcom recently completed its acquisition of VMware. As part of integration planning, and following an organizational needs assessment, we identified go-forward roles that will be required within the combined company. We regret to inform you that your position is being eliminated and your employment will be terminated."
"We would like to thank you for your dedication and service. We want to make this transition as smooth as possible, including offering you a generous severance package and providing you a non-working paid notice period," the email continued.
The exact number of employees impacted could not be determined by BI. Broadcom did not immediately respond to a request for comment.
VMware had already begun job cuts prior to the acquisition closing, BI previously reported. VMware had sent a letter to employees before that saying that employees would either get an offer from Broadcom, get a transitional role, or receive severance.
Some VMware employees speculated that Broadcom could spin out units like the security unit.
In the past year, several top VMware executives have left the cloud computing company. Some VMware employees said they worried about a culture clash with Broadcom, especially as Broadcom requires returning to the office. They also said some customer deals had slowed down as they awaited the fate of VMware.
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