Thread regarding VMware layoffs

Bagel technician stop trolling this thread, go back to your original thread. Go unionize yourself 🤣🤣

Bagel technician stop trolling this thread, go back to your original thread. Go unionize yourself 🤣🤣

The only way out of this… Is a "unionized type" response to management. Every communication that has come out talks about the shareholders and ends up with "keep doing what you are doing”. In layman's terms, keep bringing in the numbers because Hock Tan still wants this company to perform, that's what he is paying Michael Dell for.

I don't see anyone very incentivized right now to do anything, so my suggestion is, DONT DO ANYTHING. I am not saying don't support our customers, but let's all hit a big pause button, ESPECIALLY SALES for a few months. Let's see if Hock Tan is going to want to pay the same amount for a company that performs 50% less than what he expected it to.

We could end up like Elon & Twitter, they would (hopefully) understand that their 62Bn$ would just buy them some lines of code but the VMware people are not on board, and he could pull out.

The way I see things, we are toast either way. The only thing that came out of the all hands call is that Raghu was too embarrassed to even look INTO the camera, Betsy was having a nervous breakdown, and Michael was loving it because he walks out of this with 24Bn$ in his pocket. This deal is about HIM, not VMware, so as VMware's most VALUABLE asset, we should make our point!

We made this company; we can break it to make sure WE can rebuild it! Yes, this will involve a lot of casualties. It's either going to happen under Hock Tan or Raghu.

Who is with me?

You should all trust me, i INVENTED WFH, and i have unionized the bagel industry in my previous role as a bagel technician! Get your facts!

Looks like @ Broadcomguy is none other than Tom Krause.

Currently a product manager, not a new grad and been with the company for 7 months. What can I expect?

Thank you @Broadcomguy - all your posts are very informative as you can see based on the 40K views on this thread of yours. Thanks much!

@new product marketing guy, if you are sure you will laid off, then plan accordingly. Given you have <1 of experience at vmw, I would imagine IF your are gone on day 1, 3 weeks of sev pay, unless vmw has negotiated a bare minimum sev package. However, given likely this will trigger WARN, you may get 2 months of free salary as your last date may be 2 months after acquisition date.

R&D shared internal cloud post: it depends on strategy going forward, if they decide to keep this function (seems important) then it doesn't matter if you are doing RD for revenue directly or indirectly (which is the case for you). My speculation is that they may keep function and cut the fat, and those who stay will make very devent money as RD is the king in Broadcom.

Good luck!

OP,

First off, thanks a lot for posting so much valuable information!! It's precious!

As a new hire (I am here for less than 2 months), I am pretty sure I will be let go ( and I am in product marketing).... :-(
What sort of of package should I expect assuming the deal closes in 6 months?

Hi OP, VMware R&D has heavily invested into shared internal Clouds (VMs, Kubernetes, etc.), which are used to build/test/release VMware products, as well as to host 100s of internal Production R&D applications. People who implement/manage/support these internal Clouds are part of VMware R&D today. These people do not directly develop specific VMware products, but instead develop/maintain internal clouds/applications that allow all of R&D to do their work. Does Broadcom have internal VM/Kubernetes clouds for R&D? What do you expect Broadcom to do with the folks that implement/manage/support VMware’s R&D Internal Clouds?

For next 6-9 months, nothing is changing but in general Broadcom dont like new grads. My guy feel is that if they are keeping a skeleton crew, they like to keep experienced guys who can deliver a lot more. Because you wont have a decent severance, I would reommend you start looking for a job, and join a company where they value fresh grads. You have at least 6 months to find a job, if not more, I am sure you will land a good one!

Good luck!

OP any idea what happens to new grad software engineers who are just now joining?

OP here;

IT department: Someone answered earlier. Very likely your job will be eliminated or bedt csse scenario some of you will be asked to join HCL or similar 3rd party, which is ok if you can't find a job anywhere else in the world, but in my view a pretty sh^tty option.

@3xln+1gTMqgMW: Sorry buddy can't help you here.

Visa / GC : Assuming you get an offfer from Broadcom, they will support your GC process, taraf should not be an issue!

A comment about difference in this acquisition and previous, because of size and name change:
My friend why do you think this whole company is called Broadcom... Avago acquired Broadcom but kept the name Broadcom, but nothing in this company reminds of old Broadcom. Hock don't have ego issues, he picks the best brand name, and clearly VM Ware has a lot more brand recognition that CA or Symantec.
But I got to think some last night, one difference is there you guys are not a dying company as CA was. Next what I will write is pure speculation on my part, but of course with experirnce of knowing top brass mentaliity.

If your products are sticky and customers will be willing to pay more, Hock may find a way to get to $8.5B of EBITDA more from price increases and rezulting incrrase in profity versus cutting $3B+ in HC cost. Hock and Tom are smart, if they figure out that by cutting way too much (likes of 70%+) is not frasible then they be pushing more on revenue front. However, this comment is more about RD, as Hock really tries to protect R&D functions. No change in my mind on Horizontals, IT, Finance, HR, Legal, Corp Marketing etc. They will be gutted and lucky few may be asked to join Broadcom.

The other thing is WFH, Tom is pretty chill guy, he may find ways to support WFH for some critical guys, but not gonna happen at mass levels. Broadcom under Hock will not change its work from office policy. Sales function has more relax WFH type exveptions...

Good Luck guys!

Are there any “ex-CA” folks reading this? The Customer Success motion in VMW has blow up these past few years. Can anyone speak to how BC values Customer Success?

What's Broadcom's approach to visa holders and green card sponsorship?

VMware has people on various types of visas and a number of people are currently going through the process to get green cards in the US. Many of them will not be completed by the time deal closes (assuming it does).

Assuming people going through the EB process are offered a role at Broadcom, will Broadcom continue to support and sponsor those working through the process to get green cards?

I think it's important to put into perspective several differences between this acquisition and the previous ones by Broadcom. None of them even remotely approached the size of the VMware deal and they certainly didn't rebrand their Software Group to Symantec or CA Technologies.

Someone asked about IT ...that whole department will be outsourced...possibly to HCL.
You'll be given opportunity to accept new HCL contract or get redundancy.
Regarding Products..if they are making money then that's all that matters...if they are "shiny new ...potentially ...making money ..lin the future...products " H.T. is not interested in those types of products.

I'm super interested to understand the precedence of how different types of software development have been affected in past acquisitions. VMware undertakes the following efforts:

• Closed source commercial software. E.g ESXi
• Open source software tied to commercial software, but not directly part of the product. E.g the Terraform provider for vSphere
• Open source software which is then packaged sold as commercial edition. E.g Harbor Registry
• Open source tools/products to support the wider community that don't directly form part of a product. E.g Sonobuoy
• Open source contribution to large non-VMware owner projects, of which VMware consumes within a product. E.g Kubernetes

Given the Broadcom has a small and relatively inactive OSS footprint, should we expect changes in how VMware develops and monetises software?

What will be the impact on the internal IT groups responsible for internal systems. Infrastructure, Security, Data & Analyitcs, Support, Applications, etc.

https://twitter.com/TheLayoff/status/1529909265804435456

@2ige+1gTMqgMW
I was referring to Product Marketing, Solutions Marketing and Partner/Channel marketing roles - as these are under the 'marketing' organization, in general. So was asking about all these roles.

Big difference between professional services and managed services. Broadcom spunoff managed services. Their current sw is more turn-key, thus sending it elsewhere.

@3ngv+1gTMqgMW
I don't know the specifics of your role and now ot works in VMW, but broadly speaking solutions mgmt, if highly technocal role, has better chance of survival. Now you have to see how many folks are in this role, and your chance of surviving the cuts amongst your peets!
Also, if you are in money making BU, which customer base you serve etc.

Not sure if I helped, but helping you think through this...

I think I answered on TAM, depends on accounts coverage.

Customet Success Manager: I won't speculate, but someone from eX-CA tech should hrlp you with that.

It is interested information. Broadcom is the efficiency company.
32B revenue with 21k employees
See google and Facebook, they have similar ratio
Facebook : 120B revenue with 71k emp
Google: 257B revenue with 150k emp
Each employee must make 1.5M - 1.7M revenue.
So, if some company does not make that much per employee, there could be too much redundant and too much politics (talk only employees). Examples VMW has 14B with 37K emp… why do you need that many people for that low revenue?
I like to work on the company that are growing in capital…. Not dying. Check the stock price the last 5 years to see if they are grown or flat or going down.
How about you? It is up to you to determine what kind of company you like to work in.

@2ige+1gTMqgMW
are you saying .. 'product marketing/prod management/biz dev techies' will be safe and only the 'fun marketing' like branding/events type are vulnerable? I hope so.
Product/solutions marketing folks who are technical, know the product and help the sales personnel (as well as partners - i.e. partner and channel marketing) will be ok you think?

What about TAMs and Customer Success? Do they get cut and how soon?

thanks @Broadcomguy this is very useful

"Op here, Not in Europe" but not in the US either. How do we even know you work for Broadcom?

I appreciate your insight and being that I have been in the industry my whole life, all you are saying is very likely. VMW is extremely bloated, especially in management. It lacks discipline and leadership, so this will be a shock to many.

Op here, Not in Europe - Also, I wouldn't know 1/10th of what I know had I been in Europe - but this is really not about me, so let's keep it to VMW and how I can help you navigate.

Employee HC is speculation on my part (but with added math and experience, see below), folks are right, no one at Broadcom (except handful) know the inner functioning of VMW. But one should learn from history, and make their own mind about what to do and how to use that info. My sole intent of writing here is to provide you with information, so you make your own decision, which best suits you.
If you guys think me being brutally honest is in fact hurting and not helping, I will just shut up, if it helps... let me know...

That being said, since 2017 Broadcom has added Brocade, CA Tech and Symantec (Enterprise) total of 26-27K employees (from these acquisitions) per my count. Broadcom had a total of 14K headcount before Brocade acquisition. Now we are at 20K. Net 6K employees up and run rate revenue before Broacade was ~17-18B and now it's 33-34B. So Broadcom added 17B in revenue (almost 2x) with 6K net added employees. Broadcom is unlike any company you have worked for, it's run with a very disciplined approach but extremely cheap approach. We do churn out a lot of money making products every year but with focused RD investment approach. I am not saying its rigjt or wrong, but it has been working! I don't know of any other company with revenue this big and makes a 63.5% Operating income - this is insane. To put this in perspective Broadcom Operating Inc just this quarter was $4.4B (20K employees) and VMW Fiscal 2022 Op Inc was ~4.3B (38K employees).

Broadcom made public intention of making $8.5B in EBITDA (~2x of FY22), so essentially combination of finding a cost saving of ~$3.0B - 3.5B and/or increased profit of ~$1B. Again, to put in perspective vmw total R&D spend for FY22 was 2.8B and sales and marketing spend for FY 22 was $3.7B (WOW!). Looks like very big sales and marketing - that's where bigger cuts will be - again, this is a broad stroke statement...

Reason for telling this is so that you guys can absorb, somehow, the scale of increased profitability that is expected and is public commitment from Broadcom. In all their 5 big acquisitions, they have achieved their targets sooner than promised - you can search in earnings call transcripts...

Broadcom is a different animal, very disciplined on how to get to profitability end game, not much on rationale / logic of the impact of chosen path!
Don't expect logical decisions, and if you stay with the company, you will learn a totally different way of thinking and achieving results.

Of course they will keep SWEs, TAM, PSE, AE, Solution Architects, so on and so forth, even few Outbound guys, but way way less in numbers than today... making do with less, that's the Broadcom mantra.

Coming back to what this means to you individually... make your own assessment, and do what feels right. Each individual is different and there are folks in Sales and Marketing who survived cuts and are making boatloads of money and then there are folks in R&D (who are considered generally safe) who got the pink slip - YMMV. Btw, folks in product marketing / prod mgmt / biz dev techies, who know the product and work with customer on defining next gen are in diff category (in my experirnce) than those who are in fun marketing, outbound, branding etc!

On the bright side - if you can get there (stay positive) :) those who survive cuts, Broadcom takes care of its employees, from a total comp perspective. Yes, we don't give $1000 here in wellness and $2000 in massages, and nothing in internet / cable bills, no free food, no free food, group hugs etc, but I have given life changing RSUs to my employees and in last 2-3 year bonuses were big enough to take care of my employees' kids private university annual expenses. Job market isn't bad, for now, so imagine that this was happening in 2008, but this is 2022 and you can find jobs. Depending on your risk appetite, you may stay and align your new job at the time of close and get a fat severance paycheck. Just stay positive, your cheese has moved, yes it sucks, change is hard, and Broadcom is brutal, but this is not the end of the world, and I do hope that each one of you look back at this as the beginning of something better.

Last one, please try and avoid thinking about RSU conversion, holidays and perks, and focus on bigger things... Will be glad to help more, even with individual questions as best as I can, but over the weekend!

Anyone knows what will happen to new grad Propel Candidates? When the deal finalises we will have like 2-3 months of experience in a team. Will we be let go as well immediately?

Regarding unvested RSUs: Take a look at your employee agreements under the section covering acquisitions. As a part of the Symantec acquisition, there were 3 possible outcomes that were covered in employee agreements in the event of acqusition.

1. Forward vest RSUs and get paid immediately
2. Convert RSUs for equivalent shares
3. Eliminate your RSUs

Guess what Broadcom chose to with unvested RSUs in the Symantec acquisition? They did claim they would replace them with the equivalent number of shares but that was not true. I lost over $100k in unvested RSUs in exchange for approximately 50% of the value and the clock reset on the vesting schedule.

It may be different for vmware employees with their unvested RSUs and if there is a section covering acquisitions in your current employee agreement, your answers will be there as to what is likely to happen.

To people asking about RSU's.... while they based on a dollar amount, they are granted as a number of shares. There are many ways these can be handled during an acquisition. When Pivotal was purchased, unvested PVTL RSUs were converted to VMW RSUs based on the purchase price of PVTL compared to the stock price of VMW. I think it was around $15/150 at the time so if you had 100 unvested RSUs of PVTL you received 10 unvested RSUs of VMW. Value on that day was the same.

What is the paid parental leave policy at Broadcom?

My fellow VMware-iens—please use caution and discernment when reading some of these posts from Broadcom employees. I appreciate hearing about their experience to a degree, but our situation at VMware is different, and there is no way for them to know what will happen for us. Unless working at Broadcom makes you omniscient? I do think it’s wise to prepare in any job for the possibility of losing it, but I refuse to give into fear and panic, and quite honestly- I don’t appreciate the people who aren’t in our situation adding more fear and panic to our plate. It’s not helpful and it’s wreaks of fear-mongering. We have enough to deal with right now, and I’m extremely wary to listen to such polarizing anecdotal “advice”.

So from reading through this I'm fairly certain the OP lives in Europe. Employment in Europe is a lot different than it is in the US because in Europe/UK, every employee has an employment contract. Therefore they need to be offered a new contract when a change is made in ownership. In the US this isn't necessary. My paychecks still come from Pivotal Software. I'd also suggest that they're buying VMware, and even rebranding their existing Software Group as VMware. They're not going to do this and then trash throw away all of the people and processes that have made VMware what it is. Sure, unfortunately the HR/Legal/Finance teams will likely be absorbed/downsized, but the idea that they're going to go from 37,000 employees to 10,000 employees is ignoring the reality of the business that VMware is in, and what Broadcom is buying.

There is no way Broadcom can have any expectation that a Broadcom Field AE can sell Vmware solutions. The inference that Field employees will be let go is silly. What Vmware sells

Broadcomguy here: I will try to answer some broader questions now, but I can't answer all the specific ones.
Higher Salaried employees will be let go first: BS, no such thing. Hock actually prefers more experienced guys, as long as you do valuable work, your salary plays no role in employment decisions.
50 miles rule, WFH: Long term, do you really want to hang around with a company who despises WFH, they don't think it's productive and that's that. You have to accept it and make your decision. Can some of you survive 2-3 years WFH, sure! Broadly this happened in Europe due to labor laws, but in US you have to be on a exception list approved by Hock or Tom and your GM really have to pull for you.
Services: Don't know too much about it, but based on CA model, any low margin business will get transitioned to HCL or such IT firms.
TAM: Depending on accounts you call. If you no overlap with Broadcom and money generating strategic accounts - higher chances of stay, else no.
Math on end game of number of employees: Now that it's all public. EBITDA of $8.5B is less than I thought Broadcom would target. I said in my earlier post 70% OI, this one is tad shy of that number. What this means to headcount - again this is projecting 24 months out - likely 10K or so.
Contractors: Broadcom have very limited contractors, and we have very limited fabs. Broadcom don't like contractors in general.
Vacation - frankly should be last thing on your mind - but answering anyway :).... Unlimited vacation policy at Broadcom, your accrued vacation will be cashed out, doesn't matter if you stay or leave. I think 12 holidays in total, no winter break. You get a company issued cell phone with plan (due to covid, so not sure if that will change), no internet reimbursement, no well being reimb. 1K / yr matching gift.

Again, good luck guys, sharpen your resume as that will help you see how valuable you are rather than pulling your hair out for the fear of unknown... Focus on what you can control!!

Just trying to keep us organized;

• Main Post by the broadcomguy

https://www.thelayoff.com/t/1gTMqgMW

• Page 2

https://www.thelayoff.com/t/1gTMqgMW?page=2

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25K view in 2 days. Wow...

Something is off with the math on employees at Broadcom. I assume they must have a large number of contractors working at manufacturing facilities.