Broadcom lays off 3.3 percent of VMware employees after acquisition

Immediately after acquiring VMware, Broadcom laid off roughly 3.3 percent of the server software service’s employees. This concerns just under 1,300 employees working at the headquarters in Palo Alto, California.

The dismissed employees were informed on Monday, November 27 that their position was no longer available, Business Insider reported earlier. Bloomberg now writes that this initially concerns 1,267 VMware employees. The relevant headquarters will remain open. It is not officially clear how many employees remain there, although it is said to be around 3,700 people.

Broadcom said during the acquisition announcement that the Software Group business will continue under the VMware name. Just like this branch, VMware offers server software and infrastructure. Broadcom says it wants the updated VMware products to better match its own hardware. This worried several supervisors. To gain approval for the acquisition, Broadcom had to keep VMware products available for other platforms and hardware.

Broadcom’s acquisition of VMware for around $61 billion was approved by China’s market regulator at the end of November, officially allowing the deal to go ahead. Other important regulators, including the American FTC, have previously approved the acquisition.