https://www.vmware.com/content/dam/digitalmarketing/vmware/en/pdf/company/vmware-broadcom.pdf
Both boards unanimously have agreed to the merger.
4 replies (most recent on top)
With many saying that BRCM will lay off 70% of VMW, how can BRCM still expect to have $13B of VMW revenues? In other words, does any one believe that VMW is THAT bloated that even after shredding 70% of workforce they can still retain 100% of the revenues?
I get that there WILL be massive layoffs but 70%? I would expect there will be 30% layoffs.
$5B earning requires HUGE headcount reduction. At US$ 200K average annual salary, that means 25000 people. This means they plan to cut every year, not just one time, until the target EBITDA is achieved?
Broadcom trims out all of the fat and management and pays the people who are left extremely well with annual bonuses and rsu stock.
The details here say Broadcom expects VMW to contribute $8.5B in EBITDA within 3 years. VMW’s 2022 EDITDA was $3.5B.
Where’s that extra going to come from? This is where the “Broadcom lays off 70% of the people at companies it acquires” comes from.