Thread regarding VMware layoffs

No one can predict when the regulatory approvals will come in from around the world, since there is no real competitive/monopoly challenges, those should come in rather quickly (ie: before November). Although one can really never predict when governments around the world will respond with approvals.

In most deals, they were able to get approvals in 3 - 4 months. The country list is the same as the earlier deals, so shouldn’t be anything too crazy.

The Broadcom Team will do everything possible to get the approvals in time for the beginning of the new fiscal year for them.

@xsr+1hceznsY

Not sure, closing is not just dependent on Broadcom/VMW, they have to go through a lot of regulatory hurdles.

If it is just left to Broadcom, it will be done by Nov1.

@fwn+1hceznsY

Yes, although Broadcom would like to reach EBITDA of $8.5 bil, they have stated that they will reach that goal in 3 years from the close.
So that means that the 50% cuts will happen over the next 2-3 years, and not on day 1.
At least let's hope so.

@rik+1hceznsY
What is your guess about when would the acquisition close?
6 months (Nov '22) or 9 months (Feb-March '23)?

50% of roles gone on day 1 (most of VPs will stay through significant incentives)
20% reduced after 1 year
30% of roles will stay (reorganized, of course)

Some people seem to think that the assessment of roles to cut will start after the close, which is incorrect. During the next 6 months, the integration/tiger team will be working with our VPs to decide who will be in that first 50% RIF. It's doable. All in VMware know that but do not want to admit it publicly.

I think 50% sends a good strong message that you aren’t in Kansas anymore, certainly seems achievable given the stated financial goals. People are expensive.

I would think it would be 50% minimum.

Broadcom already mentioned that they will increase profits from 4.5B to 8.5B. The only way they would do this is by cutting cost, layoffs.

At present Broadcom makes 32B with 20K employees ie 1.6M/employee and VMW makes 13B from 37.5K employees ie ~350K/employee . They will try to get VMW to the same $/employee ratio as Broadcom. Although it would be hard for a pure software company to do this.

40% .. Octane likes quick execution. Before making the offer, Octane and his team knew exactly what/how much needs to be cut. Octane likes quick and dirty execution.

I am surprised that there are no other guesses.
My answer would be 25%.