Kelly Teal, Contributing Editor
October 17, 2023
4 Min Read
VMware employees are on edge.
With the close of the $61 billion Broadcom purchase in sight, staff are anxiously waiting to learn their future with the combined company.
At the same time, there’s word Tuesday that China, the last regulatory holdout, could delay its expected imminent approval, and VMware stock has dropped as a result.
But First, VMware Employees Vent: ‘Ever Seen a Psychopath Movie?’
Last month, a leaked Broadcom memo showed that VMware employees would have one of three options available to them by mid- to late October: a full time role, a transitional position or immediate severance. Now that the middle of the month has arrived, VMware employees are watching their inboxes and trying to figure out what to do in case they lose their jobs.
Over at TheLayoff.com, one staffer is openly sharing about preparing to jump ship, even without waiting for a severance package.
“I had an offer from another company and I kept dragging the decision till this day,” the person wrote on Oct. 17. “I was hoping to get at least a clarification of where things are heading but seems like we are going to have to wait much longer. I can’t risk it anymore; it is a bit less money but [peace] of mind. Accepting the offer today and moving on.”
Another VMware employee responded: “I have to believe this is part of why [Broadcom] is doing it this way with no communication and public knowledge that cuts are imminent. Saving on severance of course. I am also trying to time offers with severance but it’s hard because … companies are not going to hang out for long. … Never imagined VMware would end this way.”
Other staff are encouraging their colleagues to push new employment start dates to the beginning of November. The problem is, there’s such high demand for skilled workers that companies aren’t willing to wait long.
More than one person posting on TheLayoff.com this week is finding this to be the case. Here’s a sample: “Last month, I informed a potential employer that I needed time until November for my severance, and he agreed to wait for me. However, in the subsequent follow-up, I was informed that the position had been filled by someone with similar skills who could start much sooner. In this competitive job market, we need to seize the opportunity when it’s still hot.”
Other staff are asking why Broadcom wouldn’t just close the acquisition, bring all employees over, then start layoffs.
“This period of 4-6 weeks with no idea of what is happening with your role or the company strategy is really insane and I’ve been through four acquisitions myself and none have occurred in this grotesque manner,” a VMware employee posted on Oct. 17. “Bad for business. Bad for morale. Bad in general. What purpose does this serve other than the damage the existing business???”
Indeed, as time drags on without word, more VMware employees seem to be losing their patience.
“Ever seen a psychopath movie where he enjoys torturing till last breath?” writes one VMware staffer at TheLayoff.com. “New movie coming out soon — HOCK.”
VMware Stock On a Roller Coaster Again
VMware employees’ posts come not only as they wait for information but as VMware stock drops, again. Its share price was down more than 6% at the time of publication. Earlier in the day, they had fallen 11%. Industry rumor had it that antitrust regulators in China could delay the close of the Broadcom-VMware deal, which CEO Hock Tan has repeatedly told investors will happen on Oct. 30.
On TheLayoff.com, VMware employees speculate a couple different outcomes.
One group predicts Tan will form a small LLC to surpass China approvals. Another thinks Tan and Co. will simply forge ahead without China’s blessing “and deal with it” later. Still another agrees that Broadcom will risk incurring fines from China and proceed with the VMware close. The poster believes that if China tries to delay the transaction, Broadcom investors will react poorly and send share prices plummeting.
“My bet here is, the fines and frozen assets are just less than the hit on the stock this could result in,” the VMware employee wrote on Oct. 17.
Want to contact the author directly about this story? Have ideas for a follow-up article? Email Kelly Teal or connect with her on LinkedIn.
