Some VMware employees are concerned about the future of the company under Broadcom, as they worry about layoffs, a culture clash, and having to return to the office
https://www.businessinsider.com/broadcom-acquisition-vmware-employees-layoffs-culture-clash-2022-6
VMware and Broadcom are two companies that cannot be more different. Which is why this acquisition makes no sense to me.
VMware = Hugely Engineering, Innovation and R&D focused, more long term success oriented
Broadcom = Does not believe in spending on R&D, maximize profits for shareholders by focusing on revenue generating streams, focused more on next quarter profits than long term strategies
Going to be interesting how these two hugely different cultures integrate
In acquisitions it is prudent to understand who bought who. The option to leave is always there for employees. Broadcom has $61 billion reasons to dictate the culture of soon to be one company. If an employee does not like it, they should seek a new opportunity that better suits them. For others, I expect Broadcom will be a great fit for them and their career. There are plenty of great companies out there. Unfortunately, VMWare as we knew it is now gone. They still make strong products, but they are legacy. End of day this outcome is what capitalism is all about. Good luck to all.
“ Some intend to present demands to Broadcom leadership, pushing them to retain key elements of VMware's commitments to diversity, equity, and inclusion, remote work, and its well-liked health-benefit plan.”
This is a brilliant idea. Anyone that offers a point of view will immediately be added to the RIF list. Broadcom is not going to change their fundamentals to appease us. They are successful because they don’t negotiate and make changes. Nice try, but be real.
"...present demands..." lol - like that will go anywhere.
Employees at the software giant VMware are facing a number of uncertainties following the news that the chipmaker Broadcom plans to acquire it for $61 billion.
No sooner had the deal been announced than the specter of layoffs began to loom over VMware, which had some 33,000 employees at the end of 2020. Under the leadership of CEO Hock E. Tan, Broadcom has earned itself a reputation for buying up lots of companies — and then aggressively cutting costs.
It appears that it may follow the same playbook at VMware: In late May, Broadcom leadership said at a town-hall meeting that under its watch, VMware would become "lean and flat," an employee present at the meeting said. And in an investor presentation, Broadcom said it would be "eliminating duplicative general and administrative functions" at VMware to increase profitability.
Insider spoke with four VMware employees about the deal, who agreed that the uncertainty around layoffs fed into a larger sense of doom and gloom at the company.
While some VMware employees are taking a more optimistic "wait and see" attitude, the company insiders said, some are already scrambling to find new jobs where things are a little more stable. Many want to get started on the job hunt early, as layoffs and hiring freezes in the industry have exacerbated employee concerns about making the jump to another company.
Employees worry that under Broadcom, VMware will lose much of what they believe makes it special — specifically, a culture that values innovation, diversity, and flexible working styles above a stone-cold focus on profits. In a more practical sense, too, it won't be clear until the deal closes how Broadcom plans to trim or reorganize VMware's product lines.
"From now until then, it almost makes work semi-meaningless or difficult because we don't know if our product will continue after six months," one VMware employee said.
VMware said in a statement that it was "too early to make assumptions about the outcome of the unsolicited acquisition proposal by Broadcom."
"Following the closing of the transaction, Broadcom Software Group will operate and rebrand as VMware, incorporating Broadcom's existing infrastructure and security software solutions as part of the VMware portfolio," the statement continued. "Combining our assets and talented team with Broadcom's existing enterprise software portfolio, all housed under the VMware brand, will create a remarkable enterprise software player, with a continued focus on technology innovation."
Some employees said the takeover bid from Broadcom was shocking, especially since VMware spun off from Dell only last year. The software giant in Palo Alto has had a tumultuous few years, with former CEO Pat Gelsinger departing for Intel amid other executive changes.
"The internal dialogue was that we were going to go back to our former glory as an independent company," one employee said.
Tan, the Broadcom CEO, has tried to assuage some of those concerns, pushing the idea that the two companies will be stronger together.
"In terms of how our values align, we appreciate that VMware's culture is built on execution, passion, integrity, customers and community. We too share values like these. At Broadcom we prioritize accountability — to our customers, our partners, our shareholders and each other," Tan wrote in a letter to employees earlier this month.
Some employees, at least, aren't so sure, citing perceived differences between VMware's more flexible corporate culture and Broadcom's more buttoned-up approach to business.
"We're concerned about a culture clash between their company and ours," an employee said. "I know VMware is very employee-centric, which is why a lot of people work there."
For instance, employees said that while most VMware staff could work from home, Broadcom leadership had indicated that it generally wanted employees working in person. Working from home "gives you a lot of freedom and flexibility to do your job and care for the family," one employee said. "That's extremely important to me. It doesn't line up with Broadcom's way of operating."
And for VMware employees, the company's focus on diversity, equity, and inclusion has been a point of pride. Broadcom doesn't seem to share those values, one employee said. Some intend to present demands to Broadcom leadership, pushing them to retain key elements of VMware's commitments to diversity, equity, and inclusion, remote work, and its well-liked health-benefit plan.
"They only care about shareholder value, and they're not going to continue the programs that VMware employees are used to, the things we value," the employee said of Broadcom. A Broadcom spokesperson said that last year the company launched Diversity@Broadcom, an initiative to promote DEI across its workforce.
Amid all of this, the company's leadership is urging employees to be patient and see what happens — a message that's resonated with at least some employees, who want to see what happens before they decide to make a move.
"I think the general approach from management is, 'There's a lot we don't know. Stand by. Don't freak out. We've got a long road ahead,'" that employee said.
"It is too early to make assumptions about the outcome of the unsolicited acquisition proposal by Broadcom. While change can be difficult, we view this transaction as an opportunity to accelerate our multi-cloud strategy. Following the closing of the transaction, Broadcom Software Group will operate and rebrand as VMware, incorporating Broadcom's existing infrastructure and security software solutions as part of the VMware portfolio. Combining our assets and talented team with Broadcom's existing enterprise software portfolio, all housed under the VMware brand, will create a remarkable enterprise software player, with a continued focus on technology innovation. Collectively, we will deliver even more innovation to customers, enabling them to thrive in this increasingly complex multi-cloud era."