The recent acquisition of VMware by Broadcom has resulted in layoffs for employees, although the exact number of layoffs has not been disclosed by Broadcom. LinkedIn profiles indicate that employees in various departments such as marketing, engineering, cloud security, sales, and program management have been affected. A notice filed in Colorado stated that 184 employees in Broomfield would be cut.
There were concerns about how the Broadcom acquisition would impact VMware employees and products even before the acquisition was finalized. Broadcom’s previous acquisition of CA Technologies in 2018 led to significant staffing cuts, leading to worries about a similar situation occurring with VMware.
According to R “Ray” Wang, founder and analyst at Constellation Research, Broadcom follows a strategy of cutting expenses beyond a certain limit in order to maximize profits from its acquisitions.
Customers should assert their dissatisfaction with a company’s decisions and have the option to end services if necessary, according to Wang. However, the challenge lies in the use of software, particularly older systems, that customers rely on and cannot easily replace. During contract renewal negotiations, customers should demand the same level of service, access to product roadmaps, and input into products as they had before the acquisition.
Some VMware employees have chosen to leave on their own, influenced by the outcome of the CA Technologies acquisition by Broadcom. Senior staff members have left, retired, or are considering leaving due to concerns about Broadcom’s influence.
According to Brian Kirsch, an IT architect and instructor at Milwaukee Area Technical College, many other companies, such as Microsoft and Intel, would have been better matches for VMware compared to Broadcom. Kirsch praised VMware’s history of listening to customer input and sharing roadmaps, but he is unsure of Broadcom’s plans for the company.
Broadcom did not provide any comment regarding the layoffs at VMware.
Patrick Thibodeau, a journalist covering HCM and ERP technologies for TechTarget Editorial, has over 20 years of experience in enterprise IT reporting.