It’s certain that there are going to be layoffs, that it’s going to be hard, and that this is not going to be the same company anymore, I get that this is going to be on a large scale, but how big of a reduction are we really talking about? How many of us could be cut companywide and how much less workers will the company have when this is over?
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It’s very straight forward. Broadcom’s Revenue per Employee is around $1.39M ($20.84B revenue and number of employees 15,000). At this rate they would be looking at 1,500 to 2,000 resources at $2B Symantec Ent revenue. It could take some time to reach that level with reduction though, but I’d expect more transition employees for sure.
OK, from Art's last meeting without Hock Tan along.... we know that the number that Broadcom might take in was a guesstimate. The number set in the contract was 4300....which is a guess. So Symantec agreed that the RemainCo would severance off the difference between that number, 4300, and the 7500 in the entire EBU (or whatever that total number is). So the max RemainCo will be on the hook to severance is limited to 3200 people.
However, Art even said that BC could take as few or as many of the 7500 as they want...he even gave an example saying that BC could take as few as 3000.
So using this example let's say BC does only take 3000. Then per the contract RemainCo pays the severance for 7500 - 4300 (the guesstimate) = 3200 employees. Then Broadcom has to pay the severance for the additional folks they didn't take...i.e. 4300 - 3000 (which they did take) = 1300 people BC has to pay the severance for.
This is all to say that we have no idea how many or how few BC will actually take in. The numbers that BC expects to show on its books as new revenue from the Symantec purchase indicate that BC has set aside 500 Million just in this deal alone (they can tap other revenue I'm sure) to close down products they don't want and for any additional severance they have to pay.
@10Klez6E-vaq: what are you talking about? 93%? There will be 4000-4500 layoffs out of 7500 employees who are part of the EBU. It was all said in Art’s all hands
I wonder how they will approach Premium Support folks, there are billed customer contracts, which need to be honoured, so i guess they can't just let them all go?
They are keeping consulting services. They realize it was a huge mistake with CA.
Expect all sales and back office to be laid off.
Expect that all professional services will be sold to some other company (could be HCL).
With CA it was like 60% off all employees on day 1.
if they follow the CA layoff pattern then expect around 93% RIF from the total acquired.
BRCM doesn't run like your standard software company because they are not. They cut to recover the cost of the Acq. that's it. They worry about how it gets accomplished later. Take it from a former CA'er that was on transition.
Just read the topics posted here during last few weeks or check all hands recording on SymInfo.
The current target is to reduce the size of both future companies to around 6500-7000 combined. I believe we had 12000 in the middle of July.