Broadcom to Lay Off ‘Many’ VMware Employees Following Acquisition Completion: Report

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Broadcom Inc ($NASDAQ:AVGO)., a multinational technology company based in San Jose, California, is due to acquire VMware, a software virtualization company. In doing so, Broadcom has made the decision to lay off an unspecified number of VMware employees. This comes as the company is looking to reduce costs in order to maximize profits. Reports suggest that the layoffs will affect a number of departments, including engineering and sales, and could be significant. The decision to make significant cuts to VMware staff is a result of Broadcom’s desire to improve its bottom line.

The company has stated that it wishes to streamline its operations in order to realize greater efficiencies, which could come at the expense of jobs. It is uncertain how many employees will be affected by the layoffs, but reports suggest that it could be a significant number. The acquisition of VMware by Broadcom is the latest move in the company’s strategy to become a leader in the tech industry. With the layoffs likely to take place at the completion of the acquisition, Broadcom has made it clear that it will not shy away from making tough decisions in order to achieve its long-term goals.

Market Price

Broadcom Inc., a global technology provider, has reportedly announced they will be laying off “many” employees from VMware following its acquisition. This announcement was made on Monday, when the stock of Broadcom opened at $976.2 and closed at $950.2, down by 2.9% from prior closing price. This news has caused investors to uncertainly as this move could hurt the business in the long run. The total number of employees affected by this move is yet to be determined, however it is safe to say that this news has caused some concern among current and past VMware employees.

It is yet to be seen what other impact this move will have on the company in the long-term, however it is clear that current and former employees are not happy about this news. Only time will tell what the final outcome of this move will be and whether or not it will be beneficial for Broadcom in the long run. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Broadcom Inc. More…

Key Ratios Snapshot

Some of the financial key ratios for Broadcom Inc are shown below. More…

Analysis

GoodWhale has conducted an analysis of BROADCOM INC‘s wellbeing. Based on our Star Chart, BROADCOM INC is classified as a ‘gorilla’ – a type of company that has achieved stable and high revenue or earning growth due to its strong competitive advantage. Such companies tend to draw in investors who are looking for a stable investment opportunity, such as those who focus on dividend investing, growth investing and profitability investing. BROADCOM INC is particularly strong in dividend, growth, and profitability. However, it does have a weaker position in the area of asset. Nevertheless, BROADCOM INC still has a high health score of 8/10, which means that it is capable of paying off its debt and funding future operations. This high score indicates that it is a good long-term investment opportunity for those seeking stable returns. More…

Peers

Since its inception in 1991, Broadcom Inc has been a leading provider of semiconductor solutions. Its competitors, Qualcomm Inc, NVIDIA Corp, and Qorvo Inc, have all tried to keep up with Broadcom’s innovation and technology. While Qualcomm and NVIDIA have been able to maintain a strong presence in the market, Qorvo has struggled to keep up.

– Qualcomm Inc ($NASDAQ:QCOM)

Qualcomm Inc. is an American multinational semiconductor and telecommunications equipment company that designs and markets wireless telecommunications products and services. It has a market cap of 132.13B as of 2022 and a Return on Equity of 65.09%. The company was founded in 1985 and is headquartered in San Diego, California. Qualcomm is a leading provider of wireless technology and services for the mobile industry. It offers a comprehensive portfolio of products and services that enable mobile devices to connect to the Internet, including chipsets, modem and router technologies, and software and services.

– NVIDIA Corp ($NASDAQ:NVDA)

Nvidia is an American technology company that designs graphics processing units (GPUs) for the gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market.

Nvidia’s market cap is currently $336.08B, with a ROE of 20.03%. The company has seen strong growth in recent years, driven by demand for its GPUs in the gaming market. Nvidia is also expanding into new markets such as autonomous vehicles and artificial intelligence.

– Qorvo Inc ($NASDAQ:QRVO)

Qorvo Inc is a company that provides radio frequency (RF) solutions for mobile, infrastructure, and defense applications. It has a market cap of 8.88B as of 2022 and a Return on Equity of 14.5%. The company’s products include power amplifiers, filters, and switches.

Summary

Broadcom Inc. is a semiconductor company focused on providing solutions for wired and wireless communication. The company’s portfolio of products includes infrastructure processors, network processors, wireless solutions, enterprise storage, and broadband and communications solutions. Broadcom has reported strong financial numbers in its most recent quarterly results, showing an increase in revenue and earnings y-o-y. With a high dividend yield and a strong balance sheet, Broadcom Inc. is an attractive investment opportunity for long-term investors.