Does anyone know when the layoffs might possibly start: right after the acquisition or perhaps even a little earlier?
6 replies (most recent on top)
CA didn’t lay off a single person between July announcement and Broadcom close. Not 1 person was laid off. Prove me wrong. VMWare won’t layoff anyone either, they don’t want to go through the effort of planning and executing a layoff in the middle of integration. Nor will they want to pay for it, they will want Broadcom to do all of that. I am willing to bet you money this won’t happen.
Technically, VMWare can execute a RIF if they were planning one, and Broadcom will be happy, less people to lay off, but outside of a RIF already being planned, it won’t happen.
@1ulq+1h6S7H5z That doesn’t mean the organization can still decide to cut costs once go shop ends. VMware, if it’s own accord, could and most likely will, decide to initiate layoffs before the closing of this transaction. The primary reason will be that it makes the job of transition easier. During integration meetings, org structures and costs are reviewed. Typically Day 1 org structures are discussed, which is what I think you are implying. But in each of the last two Broadcom acquisitions, both CA and Symantec held their own layoffs after the acquisition was announced and before the deal closed. Neither of those layoffs ran afoul of regulatory requirements.
It comes down to this: if VMware looks at the deal closure and sees the chance to reduce the amount of work needed to speed along the transition, then it can decide if it’s own accord to layoff workforce. Sure, some executives may not be eliminated, but that same provision doesn’t cover ICs or contractors.
You are right / VMWare can layoff people if they want (with almost certainty I can tell you they won’t).
Broadcom can’t legally direct VMWare to do anything until close occurs. In the merger agreement it specifics what VMWare can and can’t do. For example, they can’t hire or fire an executive without reviewing with Broadcom. They won’t do it, but the language is in the agreement.
@mikey VMware can absolutely lay people off before the transaction closes. And if vmware determines that the OpEx (read: salaries) are no longer justified as the transaction progresses, that’s a big trigger for layoffs. I wouldn’t be surprised if we see layoffs in phases, with the first trickles beginning once the go shop period ends. If the regulatory hurdles look small or easily overcome, I’d increase the likelihood of layoffs coming before august.
For the 100th time posted here. Broadcom can’t fire anyone until the transaction legally closes. VMWare can fire us now if they want, but that is unlikely. Broadcom will be ready to fire most people on Day #1 of ownership. This is what they did with CA, fired everyone via email on Day #1. Broadcom is already working on pulling the lists together now as mentioned earlier. They will hit the ground running on Day #1 without question. There is no personal connection to any employee and they will clean house immediately. Sorry if this sounds harsh, but it’s legit.
yes, day 1... they already started integration meetings, they are already working on "the lists". they have also stayed they want to hit the ground running on Day 1.
Expect communication about your status soon after d day.