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Layoffs hit VMware staff

Layoffs hit VMware staff

Many roles impacted globally

Credit: Photo 151434171 © Andreistanescu | Dreamstime.com

Many VMware staff have received redundancy notices globally following the closure of the US$61 billion Broadcom deal on 22 November. 

The layoffs appear to have impacted staff in many countries and across a variety of roles spanning cloud, technical, engineering and marketing functions, including APJ vice president of the partner ecosystem and commercial organisation, Uma Thana Balasingham who openly reflected on her redundancy notice on LinkedIn. 

“I believe it’s important to talk openly about such transitions. It helps in normalising career shifts, even at senior levels, and share valuable insights for those navigating similar changes as a community,” Balasingham shared. 

“Change, especially in one’s career, can be daunting. Yet, it’s these moments that remind us of our resilience and ability to adapt. They urge us to realign with our core values and find strength in what truly matters.”

It has been cited that impacted employees have been offered ‘generous severance packages’ and an email explaining that as part of integration planning, and following an organisational needs assessment, Broadcom identified go-forward roles that will be required within the combined company.

ARN has reached out to Broadcom for details on the redundancies but hasn’t received a response at the time of publication.

Last week, VMware CEO, Raghu Raghuram announced his resignation and taking up a “strategic advisory” role to Broadcom CEO Hock Tan. 

He gave the most notable hint of what was around the corner when stating that “regardless of whether you are joining Broadcom or starting your next chapter elsewhere…”

Since the acquisition closed, VMware has been split into four units including VMware Cloud Foundation; VMware Tanzu; Application Networking (Load Balancing) and Advanced Security; and VMware Software-Defined Edge for telco and enterprise. 

Broadcom has also been quick to remove VMware signage with its own logo. 

Forrester principal analyst Tracy Woo cautioned that “for a window into the future, simply look back to Broadcom’s previous two major acquisitions, CA and Symantec."

“Between the two companies, customer support reduced significantly, and innovation was stunted from deprecated revenue investment in R&D (3 per cent drop) and sales and marketing (22 per cent drop). Broadcom claims that the VMware acquisition will be different, but its path seems to follow the same as Symantec’s,” Woo said. 

“Don’t hold your breath on a true success story in which VMware remains unaltered and its own independent entity. Do expect price hikes, degraded support, and a VMware with a more diluted value prop.”


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