Thread regarding VMware layoffs

Transitioning to Omnissa was definitely a rip-off, we get to work more for less than we once did and other employees that did not fit left and got a nice package

VMW RSU grants were one of the few reasons I stayed in our EUC BU and tolerated the weak and unimaginative leadership team. Now I regret that I didn't leave last year, when the tech job market was better. KKR acquired a rapidly declining asset. Plain and simple.

any news?

"Omnissa su-ks, the company doesn’t have direction"

In other words, nothing changed since Broadcom jettisoned our declining BU to KKR. Our all-hands meetings are identical -- no leadership on how to fix what is broken or failing.

Certainly Omnissa shares not an incentive to attract new talents.

At least Hock uses RSUs as lube

Omnissa su-ks, the company doesn’t have direction

RSUs are typically taxed at two points in time. At vest, your RSUs are treated as wages and get taxed as ordinary income. At sale, your RSUs are taxed as capital gains or treated as capital losses. Since RSUs are taxed at vest, it doesn't matter what the RSUs were worth when they were first granted. Depending on when you sell RSU stock, capital gains tax can reach as high as 20% (with current IRS rules). If you're still confused, get professional help.

AVGO RSUs, selling them in the same year means you avoid paying U.S. capital gains taxes. Deferring the AVGO RSU sale to 2025 onwards means you'll pay capital gains

Still don't get it. Selling within a year should trigger short term capital gains. Cost basis doesn not change based on when you sell it. So what am I missing wrt selling in 2024?

You know what's immoral...All the a--holes that worked for VMware that got Golden Parachutes for running the company into the ground and sc--wing all of us. I'll take the money while I can.

I'd rather work for Hock

There is a moral impediment to that. One adjective that has stuck (with me) for Hock is "henchman" - of some higher power. It did not feel real until Broadcom 'cancelled H1b extensions" - which is unthinkable at many levels.
So yeah, Omnissa su-ks, but so does working for Hock.

I'd rather work for Hock Tuah and get RSUs every quarter than the bullsh-t Omnissa is doing. At least I'm getting RSUs while I'm being fu---d.

“After they vest, they are still worth 0 until a sale/IPO.”
Slight correction - you don’t get anything on IPO

"It's a much worse deal than avgo stock"

Translation: our VMW RSU grants were converted to AVGO grants, and then our employee transfer to Omnissa erased all those future grants. KKR's executive partners stole our prior compensation incentives as part of their deal with Hock.

"it comes with the bonus of not having to work for Hock so at least we have that going for us."

Agreed, instead of Hock's version on private equity exploitation, you get KKR's version.
Mercenary leadership under a different name. The same mindset toward employees.

40000 ownership units translates to a current value of 0 since it's completely unvested. If you leave before the first vesting period you get 0. After they vest, they are still worth 0 until a sale/IPO. If the company closes before being sold or going IPO you get 0. If at the end of 5 years, the company sells or goes IPO, they would be likely to be worth a multiple of $40,000, but that's not guaranteed. It depends on the IPO or sale price.

It's a much worse deal than avgo stock, but it comes with the bonus of not having to work for Hock so at least we have that going for us.

"The taxes are... complicated. But selling them might be good but also maybe bad because of market stuff."

Okay, so let's keep it simple. If you had vested VMW RSUs converted into AVGO RSUs, selling them in the same year means you avoid paying U.S. capital gains taxes. Deferring the AVGO RSU sale to 2025 onwards means you'll pay capital gains (due to the IRS rule).

Also, Broadcom has reported that the loan repayment for acquiring VMW is negatively impacting its profitability in the current quarter, and is likely ongoing at current rates. That's responsible for the current stock price volatility as large investors unload shares.

And finally, the KKR 'ownership units' have no immediate value until it's assigned by them after a 5-year waiting period. So, that's why we're angry about losing lots of unvested Broadcom RSUs. That's the best summary of the current situation. We were cheated!

You get a free handcrafted drink at Starbucks

Can someone explain what 40000 ownership units equate to ? - KKR stocks or potential future Omnissa ticker ?

STFU and give me my RSUs!

So like, when you get the avgo RSU thing, it’s, um, kinda like stock but not really? Anyway, there’s like capital gains or whatever, but only if you sell it after it vests, unless you, like, sell it before... which I don’t think is possible but maybe? The real trick, though, is selling AS they vest, which is better because reasons. But then there's levels. Grant levels. More levels mean more RSU or maybe less, depending on who’s asking, I guess? The taxes are... complicated. But selling them might be good but also maybe bad because of market stuff. So yeah, think about that.

Why are you all talking about what you did or didn’t do with AVGO stock, the topic on this thread is, so called ownership is a big do do dump, can we all about that??

I'm waiting for Broadcom stock to peak, and I'll sell all that I can before end-of-year 2024

"This is good for anyone who does not receive RSU’s as part of their remuneration package though. Went from never ever getting any RSU’s to getting 40,000 ownership units. Not sure I’ll be here in 5 years time to take advantage of them though…"

what level can get 40000?

By selling RSUs soon after vesting, you can minimize or avoid capital gains altogether. As one source states: "Some investors opt to sell their RSUs right away, before they have an opportunity to gain or lose value. It is a savvy way to minimize these capital gains taxes"

"is selling in 2024 any less taxing than selling in future?"

Yes, it is in the U.S. Do the research and you'll see the implications.

Note, if you have not sold your Broadcom shares this year

what is so special about his year? is selling in 2024 any less taxing than selling in future?

"So you missed out on a 33%+ increase at the same time. Terrible financial decision. But good for you!"

Note, if you have not sold your Broadcom shares this year, this math is flawed. You'll pay most of the increase back in capital gains tax when you do sell later. A foolish deferral.

"Not sure I’ll be here in 5 years time to take advantage of them though…"

An undefined value and unmeasurable reward is pure fantasy for skilled people. I'll be gone in 6 months, or sooner if the tech job market recovers. KKR has five years to terminate Omnissa employees in annual waves. It's clever HR fraud, not an incentive.

Few, if any of us, will still be here to receive this deferred reward.

This is good for anyone who does not receive RSU’s as part of their remuneration package though. Went from never ever getting any RSU’s to getting 40,000 ownership units. Not sure I’ll be here in 5 years time to take advantage of them though…

"Any hope this company will take off?"

Given the shrinking sales pipeline, Omnissa is on a perpetual downward spiral. WS1 and Horizon renewals are now few and far between. It's the worst I've seen in 5 years.

Any examples? Why is it bad? Are they providing RSUs or something else?

"I learned from the example of what happened at CA and Symantec."

We should have all learned from this example. I know now that Shankar lied to us. He may benefit personally (from a KKR bonus), but the rest of us were foolish for believing him. I can't wait for the job market to improve and leave a rapidly declining Omnissa.

I learned from the example of what happened at CA and Symantec. So, I sold all my exercisable VMW RSUs before the Broadcom acquisition. I didn't want Broadcom RSUs, and I don't trust Omnissa/KKR to honor anything. All employees need to wise-up, ASAP.

So you missed out on a 33%+ increase at the same time. Terrible financial decision. But good for you!

Yes, there is always hope.

I learned from the example of what happened at CA and Symantec. So, I sold all my exercisable VMW RSUs before the Broadcom acquisition. I didn't want Broadcom RSUs, and I don't trust Omnissa/KKR to honor anything. All employees need to wise-up, ASAP.

Anyone that got moved got sc--wed one way or another. Severance would have been fine by me.

Everyone should go back and read the VMware grant award documents. Omnissa/KKR are required to honor them in value and liquidity.

Nope. Utter Sh-t. You got fu---d.