Thread regarding VMware layoffs

In your estimate, when the dust settles, how many people will be laid off from VMvare?

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Post ID: @OP+1gWj0YUk

23 replies (most recent on top)

@4ucv+1gWj0YUk thanks for the response. I hope the number isn't that high, but it does sound realistic based upon Broadcom's track record. I guess it's time to brush up the ol' resume and start interviewing. It's too bad, I have really enjoyed my time here and at the risk of sounding like a dinosaur I truly do believe in our products. I should probably get a couple of cloud certifications too...

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Post ID: @5lva+1gWj0YUk

I'd expect for 4/5th of Customer Success to be cut, and the remaining 1/5 to have back to back to back engagements all day every day.

Will quality suffer as there is less time to research and engineer solutions? Absolutely.
Does Broadcom know this? Absolutely.
For those outside of the core customer group that have contracts, only the bare minimum contractually obligated attention will be given. The intent is to guide those customers out the door so that eventually there are no more non-core contracts and attention can be given solely to core customers. Then add in a further round of Customer Success cuts afterwards for good measure, since the Broadcom motto is do more with less.

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Post ID: @4ucv+1gWj0YUk

What about Customer Success and TAMs? Customers pay for 1-5 days per week of our time, and are contracted through a specific end date. I'm assuming they can't let us go just yet right?

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Post ID: @4ttq+1gWj0YUk

Symantec Ireland was 2 weeks statutory and 2 weeks from Broadcom - 4wks per year.

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Post ID: @2dgf+1gWj0YUk

Hi Symantec friend any idea how much was the redundancy package was offered? 2 week per year? Or what was if you don’t mind telling us?

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Post ID: @2jht+1gWj0YUk

People only accustomed to doing things in a particular way never want to believe the job could be done with far less people. They are only used to that one way of doing things. Trust me. There's tons of bloat.

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Post ID: @1gto+1gWj0YUk

Ireland question below (Symantec) Marketing, Order Ops, Inside Sales, Finance, HR, Partner Teams, Internal IT Teams, Business Development, Facilities contract cut ...all gone within 6 month. Technical Support (trimmed down by about 40% and some Engineering ke

).were kept.
Payoff/redundancy was good.

If you are kept, this company will pay you well (salary, bonus and RSUs are HIGH, never made more money..)
Hope this helps!

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Post ID: @1uav+1gWj0YUk

Broadcom will keep 4,000 VM Ware people when all is said and done. Copy this post and trust me in 18 months after close, the number will be 4,000. I realize it is hard to believe, but Hock is in the business of making money. Somehow CA is generating revenue with 10,000+ less employees, and people still manage to get paid without a bloated G&A function.

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Post ID: @1ovz+1gWj0YUk

When CA Technologies was acquired we all swore that there was no way Broadcom could operate CA's business with only 30 percent of its 11k employees.

LOL

Those posts didn't age well

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Post ID: @1idk+1gWj0YUk

With CA and Symantec, Broadcom isn't all HW, it's a mix. Cisco has twice the revenue per employee as VMware, 648,805 vs. 342,667. So even using Cisco as a comparison 17,694 people would be cut from VMware. However Cisco is bloated and corporate non ops and Broadcom will cut a lot deeper than what Cisco indicates. Just to get the extra $5 billion that Broadcom says that they want they would have to cut 14,591 from VMware. Like someone else said this is base on current numbers and those numbers could or will change. Broadcom will try to increase the cost of support as they lose legacy VM business to containers and serverless application migration so we will see if that play even works.

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Post ID: @1zej+1gWj0YUk

Symantics cut in ireland how soon it happen after the acquire? What jobs were saved? And did they gave any layoff package?

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Post ID: @1zlv+1gWj0YUk

Symantec Ireland, before takeover around 1000 employees.
After take over, about 150-200.
That gives you some guidance how bad the cuts will be.

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Post ID: @1qjl+1gWj0YUk

Can't compare HW n SW business on Revenue/Employee.
Having said that, it will be a lot of cut. Having said that, wouldn't it be basically the same if Cisco/MS/AWS acquire us? These vendors can use the same account sales, core SE, TAM that they have and just keep the specialist. It's like when Dell acquired EMC. A lot of overlap in the account. At least with Broadcom, the overlap is less at the Field. So net net, the writing was on the wall for us. Our profit and growth are mediocre relative to others. There is so much stock buy back can prop up the share price.

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Post ID: @1wuc+1gWj0YUk

per labor laws I believe they have to give 90 days notice or pay in lieu to layoff that many people.

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Post ID: @1zek+1gWj0YUk

A lot

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Post ID: @pce+1gWj0YUk

That assumes the revenue stays linear. Saw elsewhere that the total Broadcom employees prior to those acquisitions was 14k. They took on 29k employees during M&A, and ended with a net total of 20k (+6k). I expect a significant exodus of customers who are not entrenched in the VMware environments. Prices will likely be raised to compensate, leading to some more attrition and then also be balanced with even more staff reductions. So effectively the same blueprint as Symantec and CA. My customers are not happy. Plenty of companies saw what happened with the prior takeovers and are already starting to plan their exit strategies to avoid being held hostage.

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Post ID: @tgr+1gWj0YUk

Broadcom will try to get VMware to the same revenue per employee as Broadcom. VMware is currently at $342,667 per employee while Broadcom is at $1,499,500. To get to the same number 28,930 VMware employees will have to be cut, leaving 8,570. So 77% of VMware employees will be cut.

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Post ID: @hnr+1gWj0YUk

about 14k in R&D (including OCTO), 20k outside R&D
let's assume 80% of R&D are kept (seems high) and 10-15% of non-R&D (seems about right)...
so I'd expect about 10k layoffs when the deal closes in 9-12 months, and another 10-11k over the following two years.

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Post ID: @ecc+1gWj0YUk

Yeah 70%. 5-6k remaining wouldn't be out of the question. even tho we do a lot of the same stuff, we need the engineers and those that know the tools to stay.

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Post ID: @tkq+1gWj0YUk

I'd estimate 70%+ of the current staff.
People in R&D are rather safe, or, in case AVGO does not like to keep a certain product / subsidiary, maybe sold off complete to 3rd party.

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Post ID: @jbc+1gWj0YUk

Anyone know how many folks are in R&D?

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Post ID: @mob+1gWj0YUk

20k I think CB, HR, IT, Finance, Marketing, Enablement will be the folks getting the axe

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Post ID: @myo+1gWj0YUk

Based on hock model, revenue from VMware, only 7k will be kept

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Post ID: @kzi+1gWj0YUk

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