After over 9 years at VMware, and having reached the P6 IC level, I was really looking forward to joining Broadcom. Yes, I received a full-time (FT) offer. However, I decided to decline.
First of all, I am a naturalized U.S. citizen (no visa issues). Located in California. I consulted with three “friend” attorneys, each of whom independently confirmed that I would be eligible for severance despite the vague language.
The offer that I received is 24% less in base salary, but it includes substantial equity value at the current AVGO price, with a higher bonus target than what I currently have.
However, the following are the circumstances that led me to decline:
In mid-April 2024, there will be a substantial round of layoffs, based on feedback from several Broadcom engineers who have been through similar situations at Broadcom. If I get laid off at that time, I would receive less than 60% of my current severance and only 1/8th of the vesting. Technically, I would work during this period not even for free, I will lose money to work for BC.
AVGO is at peak levels due to the VMware acquisition. However, after the closing and within the next few months, the technical analysis of AVGO indicates that it will return to levels before the rumors started, which is around $480 to $500. This would essentially wipe out another 30% of my stock grant. That is buy the rumors sell the news.
Morale is a major concern. Most engineers are likely to experience substantial cultural shock once onboarded, and within a month or so, the internal metrics and the behavior of direct managers are expected to become substantially stressful and potentially toxic. There will be almost three engineers competing for one position by June 2024. This will create a toxic environment and negatively impact morale. If you are single and your job is the only thing in your life, you might be able to work 12 hours or more a day. However, I have kids, so I would not be able to spend that much time away from my family. Expect to work over 12 hours a day at least until June 2024.
Bonuses may not be paid out at even 100%, even for the most aggressive and hardworking employees. In the case of CA and Symantec (I know a few engineers there), bonuses were paid out at less than 70% for most people in the first year, with a few barely reaching 80%. This is another promise that may be broken. The bonus numbers are offered to entice engineers to accept the job offers.
Lack of communication is intentional. Broadcom Software, the division that VMware will be merged with, has intentionally adopted a lack of communication and vague language to maintain full control post-close. After the merger, Broadcom is expected to be extremely strict because they need to filter out 50%-75% of the engineers by June 2024.
The job market is favorable. Whether you are planning to secure a job or raise money for your startup, it is a great time. The unemployment rate is at 4.9%, which is a positive sign. Additionally, venture capitalists are actively seeking individuals to fund and especially in bay area. Just announce it on your LinkedIn profile and see what happens.
International business for Broadcom is deteriorating. If you haven't heard, Broadcom is facing challenges in its international market share, especially in China and Europe. The decline began in 2022 and continues at an accelerated pace through this past quarter.
I thought about the scenario to accept and look for a job meanwhile, but none of the engineers at BC supported this idea because I will have no time to do anything. You will be fired if you do not work 12 hours or so a day.
I hope this information helps you make your decision. I know for a fact that five years ago, I would have accepted any offer. However, the communication, culture, and issues we have been experiencing at Broadcom are clear indicators that the next year will be the most challenging in your career, life, and definitely your health should you decide to accept.
Good luck to all of you.