URGENT UPDATE: Broadcom, the $1.65 trillion chip giant, has just cut staff in key areas, including sales and account management, this week. The layoffs, confirmed through LinkedIn posts, are part of a broader trend as the company adjusts to market dynamics following its recent acquisition of VMware.
The cuts, reported on Thursday, October 19, 2023, have left many employees in sales and customer success roles uncertain about their futures. While the exact number of affected positions remains unclear, sources indicate that this decision follows a significant reduction in VMware’s workforce, which has been halved since the acquisition in late 2023.
Broadcom’s strategic moves come as the company capitalizes on the booming AI sector, producing chips designed specifically to power advanced technologies. The company reached a market cap of over $1 trillion late last year and recently entered a pivotal agreement with OpenAI to supply 10 gigawatts of custom AI accelerators.
Despite these gains, Broadcom has faced scrutiny over its decision to increase prices on VMware products, further complicating its integration strategy. The latest layoffs indicate a challenging balancing act for the company as it navigates both growth and restructuring.
As Broadcom continues to adapt to the shifting landscape, industry experts and analysts will be closely monitoring how these workforce changes affect overall operations and future product offerings. The company has not yet responded to requests for comment regarding the layoffs.
Stay tuned for more updates on this developing story as it unfolds.
