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What happened to Broadcom's track record?

Following the completion of the company's acquisition of VMware, Broadcom CEO Hock Tan said that the company has a long track record of investing in the businesses it acquires, and that this would continue with VMware. Come one week later, Broadcom is reportedly laying off staff.

On November 22, Broadcom closed its acquisition of cloud-computing company VMware, which means that VMware's common stock will now cease to be traded on the New York Stock Exchange.

Broadcom stated that the company's focus moving forward is to enable enterprise customers to create and modernise their private and hybrid cloud environments.

Hock Tan, President and CEO of Broadcom, celebrated the closed deal by welcoming VMWare to the organisation, stating that "we are well positioned to enable global enterprises to embrace private and hybrid cloud environments".

Tan continued to say that Broadcom has a long track record of investing in the businesses it acquires, and that will continue with VMware. A statement that did not age particularly well, as some VMware employees reportedly learned Monday this week their positions would be eliminated.

Yahoo Finance reports that employees, though unclear how any, whose positions were eliminated received an email on Monday.

The email, reportedly viewed by Business Insider, read the following: "Broadcom recently completed its acquisition of VMware. As part of integration planning, and following an organizational needs assessment, we identified go-forward roles that will be required within the combined company. We regret to inform you that your position is being eliminated and your employment will be terminated."

Broadcom is said to have offered a "generous severance package" and a "non-working paid notice period". 

The report also says that VMware had already started cutting jobs prior to the deal closing.

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June 13 2024 1:49 pm V22.4.55-2