If you read the projected synergy plans for Broadcom on VMware, they said that their goal is $8.5B in operating margin in 3 years. VMware operating margin today is $3.5B. To get an incremental $5B in profitability, its not going to come from revenue growth. VMware only grew low single digits last year, and their recent quarter was a disaster. Its going to come from job cuts. VMware has 37K employees today. Broadcom has 20K employees today. To get to Broadcom's profitability goals, they will likely need to get to a target of 20K VMware employees in 3yrs, or smaller. Which means 17K job cuts during the next 3 years at VMware. G&A functions (Finance, HR, IT) will be cut first drastically likely by 90%, then Sales and Marketing likely by 50%, and finally R&D likely by 25%. All groups, no exceptions. Broadcom will be ruthless in cost cutting. VMware campus in Palo Alto likely also gone. Its too expensive and 90% empty after covid.
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TAMs are revenue generating, should be ok as long as the customer us in the Core Group (600).
CSMs are free here...very few...
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?
Solution engineers at CA were immediately cut by 10-15%, and by year two, 50% of customer facing technical staff was gone.
What about Solutions Engineers? Are they placed in sales?
Engineer and technical support belong to BU. So, BU revenue will decide how many headcount
Marketing policy seem 1% of revenue … figure how many people :)
Sale and OPs will go to corporation under Hock. If you have good account and make good sale target, you will be great. If you are such lazy, you can hide in VMW with politics, but not Broadcom.
IT and all internal tool developers. You will go to IT. It is very cut through and expect a lot… It is one of the most clean departments.
HR … expect 1 HR per 1000 or more new employees :) or 1 HR maximum per BU.
So you're saying Software Engineers will be targeted the last? That makes sense since it's a lot more difficult to assess redundancy in Engineering and they don't want to cause too much immediate turmoil with the products. Re-hiring Engineers in case of a mistake is also very expensive.
it's really easy to see and understand the redundancies in things like HR, Accounting, Sales and Marketing.
In addition, given Mr. Hock's bias for Engineering I think they will be the last category to be looked at.
Just my $0.02, thoughts???