Broadcom Cuts 1,800+ VMware Jobs in Profitability Push

Broadcom Inc. is set to lay off over 1,800 employees at VMware as part of its strategy to increase profitability, according to reports. The majority of the job cuts, approximately 1,267, will take place at VMware’s headquarters in Palo Alto, California, while the remaining affected employees are based in Washington, Colorado, Georgia, and other locations. Broadcom recently completed its $61 billion acquisition of VMware after facing delays and scrutiny from antitrust regulators. The chipmaker aims to more than double VMware’s earnings before interest, taxes, depreciation, and amortization to $8.5 billion within three years. The layoffs, which were anticipated prior to the acquisition’s completion, are part of a broader restructuring effort. As part of this initiative, Broadcom plans to reorganize VMware into four business divisions, including a focus on their Tanzu platform for container applications. There are also discussions about selling parts of VMware’s product portfolio, such as the end-user computing and cybersecurity software lines. Through these actions, Broadcom aims to optimize operations and position VMware for future growth.