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.
Ge-z man, just look at their history.
20% of employees, top 20% of customers.
That’s their MO.
But sure, it will be different this time… ugh…
CA had 13000 people with only 900 in Mainframe. MF was for 90% of revenue. Broadcom bought CA and split mainframe from the 10% that didn't generate sht. Now mainframe has a few hundred more employees and growing. Yea it's boring tech but it makes so much fking money. Octane wants money makers.
Any transition causes some pain to employees and customers. The ones who stay see positive differences on both sides of the fence.
There are no free rides. It is a business made to have profit, deliver value to customers, employees and shareholders.
People that could spend their day near the coffee machine pretending to be busy are gone.
There are no special statuses besides the one that delivering results grants you.
All those silly meetings and useless reports and projects that you wonder why they exist, will be gone. No time nor money to spend on BS.
There's plenty where to cut.
Check out ca technologies layoffs, you will find exactly this post there when they werd aquired, it was worse than anyone predicted
Broadcom will raise prices substantially on all products which will get rid of the smaller customers who open the most support issues. The larger customers will be offered complete packages of multiple software products that is too good for them to pass up. Customers like Barclay's Bank bought everything that was offered to them this way.
"Retain" revenues is a misnomer. If you listened to today's Broadcom webcast, their annual software renewals average 120% of previous renewals. They will target the customers who have a large investment in VMWare and can't quickly pivot somewhere else, and squeeze them until they scream.
@bgl+1gVP1Lho
Wow..
So marketing teams (including product marketing, solutions marketing and channel marketing) will all be gone?
VMW 2016: $7.4B revenue - inflation adjusted, $8.7B; 17k head count
VMW 2022: $12.8B revenue - 47% growth inflation adjusted; 34k head count
Headcount as gone up 50% in the last what? 4 years? And it's all been dumped into sales which eat 40% of the revenue. Looking entirely at the nepotism going on, VMWare is now a solid 80% indian. Sales and management is chock full of them. Only half the headcount is engineers and the rest is basically no longer necessary. Broadcom puts their engineers at 60-70% of the headcount. So there's the fat they expect to cut. So long sales and marketing teams.
Former Symantec employee:
What they did made no logical sense.
Customers couldn't get license renewals or support. There just wasn't the people power to handle the size of the company. Customers got fed up and left to a competitor.
Even now, 2 years later. I still hear about Customers and partners who can't get licenses renewed or the support the need.
The only people actually able to buy/renew are the ones spending millions. Forget about your SMB/mid market. That will disappear. Focus will be on top x high spenders.
That question was very popular in both Ca and Symantec acquisitions among workers and customers... alongside with other "how do they think....." type of questions... They just do it...
It all depends on the structure of your current company. People that directly generate certain level of profit will stay. Symantec / CA likely had more fat than VMware. I would not expect 70%. The actual % will depend on how efficient VMware is right now.
And on your main question how... Some customers will drop; the remaining ones will pay more eventually
Yes. We're really that bloated. Easily half of the company is expensive and redundant staff, duplicated across sales or geos.
Ask a former Symantec employee or just go over to that forum on this very site and you will know what to expect