Broadcom Initiates Layoffs and Reviews Business Units Post VMware Acquisition

In the aftermath of Broadcom’s recent acquisition of cloud-computing giant VMware, reports have surfaced regarding significant changes within the organization. According to Bloomberg News, approximately 1,300 employees in California are set to face layoffs as part of a restructuring effort by the chipmaker.
VMware at Mobile World CongressInsider sources revealed that Broadcom is also evaluating strategic options for two key business units within VMware. Broadcom CEO Hock Tan reportedly addressed this matter in an internal email, highlighting plans to review the future of the End-User Computing and Carbon Black divisions.

However, VMware will persist with its operations structured across four units: Cloud Foundation, Tanzu, Software-Defined Edge, and Application Networking and Security. This move signifies a deliberate effort to maintain distinct focus areas amid the company’s evolution post-acquisition.

In a noteworthy development, Raghu Raghuram, VMware’s top executive, assumes the role of CEO Tan’s technical advisor, signifying a pivotal role in the transition phase.

Broadcom finalized the acquisition of VMware, valued at $69 billion, on November 22, following regulatory clearance from Chinese authorities. These structural changes and strategic evaluations hint at a phase of transition and optimization within the newly combined entity, marking a significant juncture in Broadcom’s expansion into the cloud computing domain.

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