Broadcom is planning deep job cuts at VMware focusing on nonengineering jobs, according to two sources familiar with the matter.
Broadcom is preparing to close a $61 billion acquisition of VMware. The European Union and the UK recently gave Broadcom conditional approval to go forward with the deal, while US authorities are still reviewing it. Broadcom expects the deal to close in its fiscal 2023, which ends this fall.
These layoffs may be announced around when VMware announces its earnings at the end of August. The cuts are expected to affect nonengineering roles where the two companies share services, the people said. They asked not to be identified discussing sensitive matters. One of the people said the job cuts could get really deep.
"While we expect Broadcom's acquisition of VMware to close within Broadcom's fiscal year 2023, integration planning is not complete, and any rumors about post-acquisition plans are both speculative and premature," a VMware spokesperson said. Broadcom did not respond to requests for comment.
VMware had about 38,300 employees in February, while Broadcom had roughly 20,000 staffers in October, according to Securities and Exchange Commission filings.
Broadcom CEO Hock Tan has led the company through an acquisition spree in recent years, and he hasn't been afraid to conduct sizable layoffs once deals close. He chopped thousands of jobs after buying companies including CA Technologies and Brocade.
VMware employees have been expecting layoffs once the deal closes, and Broadcom leadership told VMware staff it wanted to make the company "lean and flat," Insider previously reported. Already, several executives have left VMware.
The deal has led to some uncertainty among customers. Employees also said there might be a culture clash, as Tan has hinted at an end to remote work. Many employees have speculated that Broadcom might spin out or sell VMware's cybersecurity and cloud units.
