Broadcom to lay off 1,300 VMware employees following takeover: report

Chipmaker Broadcom will lay off about 1,300 VMware employees in California following its acquisition of the cloud-computing firm, reported Bloomberg News on Thursday.

Broadcom did not immediately respond to a Reuters request for comment.

The chipmaker will also review strategic options for two business units of VMware, Insider had reported on Wednesday, citing a leaked email from CEO Hock Tan to employees.


Broadcom closed its $69 billion acquisition of VMware on November 22 after receiving regulatory approval from China.

The deal, one of the biggest globally when announced in May 2022, was the latest in Tan's efforts to boost the chipmaker's software business.

However, the transaction faced tough regulatory scrutiny across the world and the companies had delayed the closing date three times.

China's regulatory approval came through on Tuesday after ongoing tensions with the U.S. around tougher chip export control measures had stoked fears among some investors on the company's ability to close the deal before the Nov. 26 deadline.

"The improved mood music after the meeting between China's President Xi Jinping and US President Joe Biden earlier this month helped to settle remaining nerves," Danni Hewson, head of financial analysis at AJ Bell, said on Tuesday, after the companies said they planned to close the transaction on November 22.